XML 42 R32.htm IDEA: XBRL DOCUMENT v3.2.0.727
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 9 Months Ended
Jul. 26, 2015
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 Loss on Derivative Instruments Qualifying as Cash Flow Hedges
 
Defined and Postretirement Benefit Plans
 
Cumulative Translation Adjustments
 
Total
 
(in millions)
 
 
Balance at October 26, 2014
$
24

 
$
—

 
$
(105
)
 
$
5

 
$
(76
)
Other comprehensive income (loss) before reclassifications
(3
)
 
1

 
(45
)
 
—

 
(47
)
Amounts reclassified out of AOCI
—

 
(6
)
 
2

 
9

 
5

Other comprehensive income (loss), net of tax
(3
)
 
(5
)
 
(43
)
 
9

 
(42
)
Balance at July 26, 2015
$
21

 
$
(5
)
 
$
(148
)
 
$
14

 
$
(118
)


 
Unrealized Gain on Investments, Net
 
Unrealized Gain on Derivative Instruments Qualifying as Cash Flow Hedges
 
Defined and Postretirement Benefit Plans
 
Cumulative Translation Adjustments
 
Total
 
(in millions)
 
 
Balance at October 27, 2013
$
25

 
$
2

 
$
(72
)
 
$
7

 
$
(38
)
Other comprehensive income (loss) before reclassifications
8

 
3

 
—

 
(1
)
 
10

Amounts reclassified out of AOCI
(9
)
 
(5
)
 
—

 
—

 
(14
)
Other comprehensive income (loss), net of tax
(1
)
 
(2
)
 
—

 
(1
)
 
(4
)
Balance at July 27, 2014
$
24

 
$
—

 
$
(72
)
 
$
6

 
$
(42
)
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for the three and nine months ended July 26, 2015:
 
Three and Nine Months Ended
 
July 26, 2015
 
 
 
(In millions, except per share amounts)
Shares of common stock repurchased
32

Cost of stock repurchased
$
625

Average price paid per share
$
19.47
Effect of share-based compensation on the results of operations
The effect of share-based compensation on the results of operations was as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
July 26,
2015
 
July 27,
2014
 
July 26,
2015
 
July 27,
2014
 
 
 
 
 
 
 
 
 
(In millions)
Cost of products sold
$
14

 
$
13

 
$
43

 
$
40

Research, development, and engineering
17

 
16

 
52

 
49

Marketing and selling
6

 
6

 
19

 
17

General and administrative
9

 
9

 
27

 
26

Total share-based compensation
$
46

 
$
44

 
$
141

 
$
132
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 nine months ended July 26, 2015 is presented below:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
 
 
 
 
(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 26, 2014
33

 
$
12.59

Granted
10

 
$
23.36

Vested
(15
)
 
$
11.95

Canceled
(1
)
 
$
14.94

Non-vested restricted stock units, restricted stock, performance shares and performance units at July 26, 2015
27

 
$
16.44
Significant valuation assumptions in relation to ESPP
Underlying assumptions used in the model and the weighted average estimated fair value of purchase rights under the ESPP are outlined in the following table:
 
Nine Months Ended
 
July 26, 2015
 
July 27, 2014
ESPP:
 
 
 
Dividend yield
1.56%
 
2.14%
Expected volatility
31.4%
 
25.3%
Risk-free interest rate
0.07%
 
0.08%
Expected life (in years)
0.5
 
0.5
Weighted average estimated fair value
$6.04
 
$4.07