Earnings Per Share

9 Months Ended

Aug. 01, 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				Nine Months Ended
	August 1, 2021		July 26, 2020		August 1, 2021		July 26, 2020

	(In millions, except per share amounts)
Numerator:
Net income	$	1,716	$	841	$	4,176	$	2,488
Denominator:
Weighted average common shares outstanding	908		915		914		916
Effect of weighted dilutive restricted stock units and employee stock purchase plan shares	10		7		9		8
Denominator for diluted earnings per share	918		922		923		924
Basic earnings per share	$	1.89	$	0.92	$	4.57	$	2.71
Diluted earnings per share	$	1.87	$	0.91	$	4.52	$	2.69
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.