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

3 Months Ended

Jan. 31, 2021

Equity [Abstract]

Components of accumulated other comprehensive loss, after-tax basis

Changes in the components of accumulated other comprehensive income (AOCI), net of tax, were as follows:

	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 25, 2020	$	20	$	(133)	$	(199)	$	13	$	(299)
Other comprehensive income (loss) before reclassifications	(1)		1		—		—		—
Amounts reclassified out of AOCI	(1)		3		—		—		2
Other comprehensive income (loss), net of tax	(2)		4		—		—		2
Balance as of January 31, 2021	$	18	$	(129)	$	(199)	$	13	$	(297)

	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 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)

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for the three months ended January 31, 2021 and January 26, 2020:

	Three Months Ended
	January 31, 2021		January 26, 2020
	(in millions, except per share amount)
Shares of common stock repurchased	none		3
Cost of stock repurchased	$	—	$	200
Average price paid per share	$	—	$	58.62

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 31, 2021		January 26, 2020
	(In millions)
Cost of products sold	$	36	$	31
Research, development and engineering	40		35
Marketing and selling	13		11
General and administrative	18		16
Total share-based compensation	$	107	$	93

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 31, 2021 is presented below:

	Shares	Weighted Average Grant Date Fair Value
	(In millions, except per share amounts)
Outstanding as of October 25, 2020	15	$	45.36
Granted	4	$	87.16
Vested	(5)	$	42.52
Canceled	—	$	51.86
Outstanding as of January 31, 2021	14	$	59.50