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

6 Months Ended

Apr. 29, 2012

Equity [Abstract]

Components of accumulated other comprehensive loss, after-tax basis

Components of accumulated other comprehensive income, on an after-tax basis where applicable, were as follows:

	April 29, 2012			October 30, 2011
	(In millions)
Pension liability	$	(25	)	$	(25	)
Unrealized gain on investments, net	20			17
Cumulative translation adjustments	12			14
	$	7		$	6

Summary of stock repurchases

The following table summarizes Applied’s stock repurchases for the three and six months ended April 29, 2012 and May 1, 2011:

	Three Months Ended				Six Months Ended
	April 29, 2012		May 1, 2011		April 29, 2012		May 1, 2011
	(In millions, except per share amounts)
Shares of common stock repurchased	16		8		34		19
Cost of stock repurchased	$	200	$	118	$	400	$	268
Average price paid per share	$	12.33	$	15.54	$	11.60	$	14.48

Dividends declared

The following table summarizes the dividends declared by Applied's Board of Directors during fiscal 2012:

Date Declared	Record Date	Payable Date	Amount per Share	Aggregate Amount (In millions)
December 6, 2011	February 23, 2012	March 15, 2012	$0.08	$103
March 5, 2012	May 24, 2012	June 14, 2012	$0.09	$115

Share-based compensation and related tax benefits

Total share-based compensation and related tax benefits were as follows:

	Three Months Ended				Six Months Ended
	April 29, 2012		May 1, 2011		April 29, 2012		May 1, 2011
	(In millions)
Share-based compensation	$	43	$	38	$	96	$	72
Tax benefit recognized	$	12	$	11	$	27	$	21

Effect of share-based compensation on the results of operations

The effect of share-based compensation on the results of operations for the three and six months ended April 29, 2012 and May 1, 2011 was as follows:

	Three Months Ended				Six Months Ended
	April 29, 2012		May 1, 2011		April 29, 2012		May 1, 2011
	(In millions)
Cost of products sold	$	14	$	13	$	27	$	24
Research, development, and engineering	13		12		26		22
Selling, general and administrative	16		13		43		26
Total share-based compensation	$	43	$	38	$	96	$	72

Stock option activity

Stock option activity for the six months ended April 29, 2012 was as follows:

	Shares		Weighted Average Exercise Price
	(In millions, except per share amounts)
Outstanding at October 30, 2011	30		$	13.05
Assumed in Varian acquisition	5		$	4.85
Exercised	(2	)	$	6.72
Canceled and forfeited	(8	)	$	16.70
Outstanding at April 29, 2012	25		$	10.78
Exercisable at April 29, 2012	23		$	11.13

Restricted stock unit, restricted stock and performance unit activity

Restricted stock unit, restricted stock and performance unit activity for the six months ended April 29, 2012 was as follows:

	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term
	(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock and performance units at October 30, 2011	28		$	12.64	2.8	Years
Granted	15		$	10.69
Vested	(7	)	$	12.86
Canceled	(1	)	$	12.89
Non-vested restricted stock units, restricted stock and performance units at April 29, 2012	35		$	11.76	2.9	Years

ESPP valuation assumptions

	Three Months Ended		Six Months Ended
	April 29, 2012	May 1, 2011	April 29, 2012	May 1, 2011
ESPP:
Dividend yield	2.94%	1.98%	2.94%	1.98%
Expected volatility	33%	27%	33%	27%
Risk-free interest rate	0.12%	0.17%	0.12%	0.17%
Expected life (in years)	0.5	0.5	0.5	0.5