Table of Contents (In millions, except per share amounts) APPLIED MATERIALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year 2019 2018 2017 Net sales $ 14,608  $ 16,705  $ 14,698  Cost of products sold 8,222  9,188  8,086  Gross profit 6,386  7,517  6,612  Operating expenses: Research, development and engineering 2,054  2,022  1,781  Marketing and selling 521  521  457  General and administrative 461  483  438  Total operating expenses 3,036  3,026  2,676  Income from operations 3,350  4,491  3,936  Interest expense 237  234  198  Interest and other income, net 156  139  78  Income before income taxes 3,269  4,396  3,816  Provision for income taxes 563  1,358  297  Net income $ 2,706  $ 3,038  $ 3,519  Earnings per share: Basic $ 2.89  $ 3.00  $ 3.28  Diluted $ 2.86  $ 2.96  $ 3.25  Weighted average number of shares: Basic 937  1,013  1,073  Diluted 945  1,026  1,084  See accompanying Notes to Consolidated Financial Statements. 61