Earnings Per Share

3 Months Ended

Jan. 31, 2021

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 restricted stock units and employee stock purchase plan 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.


	Three Months Ended
	January 31, 2021		January 26, 2020

	(In millions, except per share amounts)
Numerator:
Net income	$	1,130	$	892
Denominator:
Weighted average common shares outstanding	915		916
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares	10		11
Denominator for diluted earnings per share	925		927
Basic earnings per share	$	1.23	$	0.97
Diluted earnings per share	$	1.22	$	0.96
Potentially weighted dilutive securities	—		—

Potentially weighted dilutive securities attributable to outstanding restricted stock units are excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value are greater than the average market price of Applied common stock, and therefore their inclusion would be anti-dilutive.