v2.4.0.6
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