Earnings Per Share

9 Months Ended

Jul. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

Note 2   Earnings Per Share

Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of stock options, restricted stock units, and employee stock purchase plans shares) outstanding during the period. Applied’s net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to the Company’s non-complex capital structure. For purposes of computing diluted earnings per share, weighted average potential common shares do not include stock options with an exercise price greater than the average fair market value of Applied common stock for the period as the effect would be anti-dilutive.

	Three Months Ended				Nine Months Ended
	July 31,		August 1,		July 31,		August 1,
	2011		2010		2011		2010
	(In millions, except per share amounts)
Numerator:
Net income	$	476	$	123	$	1,471	$	470
Denominator:
Weighted average common shares outstanding		1,318		1,340		1,321		1,342
Effect of dilutive stock options, restricted stock units and employee stock purchase plans shares		12		9		12		9
Denominator for diluted earnings per share		1,330		1,349		1,333		1,351
Basic earnings per share	$	0.36	$	0.09	$	1.11	$	0.35
Diluted earnings per share	$	0.36	$	0.09	$	1.10	$	0.35
Potentially dilutive securities		17		34		17		34