XML 44 R34.htm IDEA: XBRL DOCUMENT v3.20.1
Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 6 Months Ended
Apr. 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 (Loss) on Investments, NetUnrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow HedgesDefined and Postretirement Benefit PlansCumulative Translation AdjustmentsTotal
(in millions)
Balance as of October 27, 2019$11  $(16) $(188) $13  $(180) 
Other comprehensive income (loss) before reclassifications5  (137) —  —  (132) 
   Amounts reclassified out of AOCI(4) 1  —  —  (3) 
Other comprehensive income (loss), net of tax1  (136) —  —  (135) 
Balance as of April 26, 2020$12  $(152) $(188) $13  $(315) 

Unrealized Gain (Loss) on Investments, NetUnrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow HedgesDefined and Postretirement Benefit PlansCumulative Translation AdjustmentsTotal
(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 13  (4) —  (1) 8  
Amounts reclassified out of AOCI—  (4) —  —  (4) 
Other comprehensive income (loss), net of tax13  (8) —  (1) 4  
Balance as of April 28, 2019$3  $(17) $(137) $13  $(138) 
(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 six months ended April 26, 2020 and April 28, 2019:

Three Months EndedSix Months Ended
April 26,
2020		April 28,
2019		April 26,
2020		April 28,
2019
 (in millions, except per share amount)
Shares of common stock repurchased4  16  7  38  
Cost of stock repurchased$199  $625  $399  $1,375  
Average price paid per share$50.14  $39.91  $54.06  $36.48  
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 EndedSix Months Ended
April 26,
2020		April 28,
2019		April 26,
2020		April 28,
2019
 (In millions)
Cost of products sold$24  $22  $55  $44  
Research, development and engineering27  25  62  49  
Marketing and selling8  7  19  15  
General and administrative12  11  28  22  
Total share-based compensation$71  $65  $164  $130  
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 six months ended April 26, 2020 is presented below:
SharesWeighted
Average
Grant Date
Fair Value
 (In millions, except per share amounts)
Outstanding as of October 27, 201918  $35.78  
Granted5  $53.30  
Vested(8) $30.79  
Canceled—  $41.31  
Outstanding as of April 26, 202015  $44.53  
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions Underlying assumptions used in the model are outlined in the following table:
Three and Six Months Ended
April 26, 2020April 28, 2019
Dividend yield1.40%2.18%
Expected volatility37.2%37.1%
Risk-free interest rate1.05%2.51%
Expected life (in years)0.50.5
Weighted average estimated fair value$15.24$9.78