Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)

3 Months Ended

Jan. 26, 2020

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 (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges		Defined and Postretirement Benefit Plans		Cumulative Translation Adjustments		Total
	(in millions)
Balance as of October 27, 2019	$	11	$	(16)	$	(188)	$	13	$	(180)
Other comprehensive income (loss) before reclassifications	3		(9)		—		—		(6)
Amounts reclassified out of AOCI	(1)		(1)		—		—		(2)
Other comprehensive income (loss), net of tax	2		(10)		—		—		(8)
Balance as of January 26, 2020	$	13	$	(26)	$	(188)	$	13	$	(188)

	Unrealized Gain (Loss) on Investments, Net		Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges		Defined and Postretirement Benefit Plans		Cumulative Translation Adjustments		Total
	(in millions)
Balance as of October 28, 2018	$	7	$	(9)	$	(137)	$	14	$	(125)
Adoption of new accounting standards (a)	(17)		—		—		—		(17)
Other comprehensive income (loss) before reclassifications	5		(12)		—		—		(7)
Amounts reclassified out of AOCI	—		(5)		—		—		(5)
Other comprehensive income (loss), net of tax	5		(17)		—		—		(12)
Balance as of January 27, 2019	$	(5)	$	(26)	$	(137)	$	14	$	(154)

(a) - Represents the reclassification adjustment related to the adoption of Accounting Standard Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of fiscal 2019.

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for the three months ended January 26, 2020 and January 27, 2019:

	Three Months Ended
	January 26, 2020		January 27, 2019
	(in millions, except per share amount)
Shares of common stock repurchased	3		22
Cost of stock repurchased	$	200	$	750
Average price paid per share	$	58.62	$	34.04

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
	January 26, 2020		January 27, 2019
	(In millions)
Cost of products sold	$	31	$	22
Research, development and engineering	35		24
Marketing and selling	11		8
General and administrative	16		11
Total share-based compensation	$	93	$	65

Restricted stock units and restricted stock activity

A summary of the changes in any restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the three months ended January 26, 2020 is presented below:

	Shares	Weighted Average Grant Date Fair Value
	(In millions, except per share amounts)
Outstanding as of October 27, 2019	18	$	35.78
Granted	5	$	53.61
Vested	(7)	$	30.76
Canceled	—	$	39.47
Outstanding as of January 26, 2020	16	$	44.14