STOCKHOLDERS' EQUITY

12 Months Ended

Oct. 31, 2016

Stockholders' Equity Note [Abstract]

STOCKHOLDERS EQUITY

18.   STOCKHOLDERS' EQUITY

Stock Repurchase Program

On November 22, 2013 we announced that our board of directors had authorized a share repurchase program. The program was designed to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs to target maintaining a weighted average share count of approximately 335 million diluted shares. For the year ended October 31, 2016, we repurchased 2.4 million shares for $98 million, which completed the purchases under this authorization. For the year ended October 31, 2015 we repurchased approximately 6 million shares for $267 million. For the year ended October 31, 2014 we repurchased 4 million shares for $200 million. All such shares and related costs are held as treasury stock and accounted for using the cost method.

On May 28, 2015 we announced that our board of directors had approved a new share repurchase program (the "2015 repurchase program"). The 2015 share repurchase program authorizes the purchase of up to $1.14 billion of our common stock through and including November 1, 2018. The 2015 repurchase program does not require the company to acquire a specific number of shares and may be suspended or discontinued at any time. During the year ended October 31, 2016, upon the completion of our previous repurchase program, we repurchased approximately 8.3 million shares for $336 million under this authorization. All such shares and related costs are held as treasury stock and accounted for using the cost method. As of October 31, 2016, we had remaining authorization to repurchase up to $804 million of our common stock under this program.

In the first quarter of 2017, we repurchased approximately 2.5 million shares for $111 million under the 2015 repurchase program. In addition, we retired 292.5 million treasury shares at an aggregate cost of $10.6 billion, which represents all our previously repurchased shares over the past 11 years and our November 2016 repurchases. Also the retirement resulted in a decrease of $6.7 billion to retained earnings and a decrease of $3.9 billion to additional paid-in-capital.

Cash Dividends on Shares of Common Stock

During the year ended October 31, 2016, cash dividends of $0.46 per share, or $150 million were declared and paid on the company's outstanding common stock. During the year ended October 31, 2015, cash dividends of $0.40 per share, or $133 million were declared and paid on the company's outstanding common stock. During the year ended October 31, 2014, cash dividends of $0.53 per share, or $176 million were declared and paid on the company's outstanding common stock.

On November 16, 2016, we declared a quarterly dividend of $0.132 per share of common stock, or approximately $43 million which will be paid on January 25, 2017 to shareholders of record as of the close of business on January 3, 2017. The timing and amounts of any future dividends are subject to determination and approval by our board of directors.

Accumulated other comprehensive income (loss)

The following table summarizes the components of our accumulated other comprehensive income (loss) as of October 31, 2016 and 2015, net of tax effect:

	October 31,
	2016			2015
	(in millions)
Foreign currency translation, net of tax expense of $(5) and $(2) for 2016 and 2015, respectively	(197		)	(189		)
Unrealized losses on defined benefit plans, net of tax benefit of $176 and $126 for 2016 and 2015, respectively	(305		)	(204		)
Unrealized gains (losses) on derivative instruments, net of tax (expense) benefit of $2 and $(2) for 2016 and 2015, respectively	(1		)	2
Total accumulated other comprehensive loss	$	(503	)	$	(391	)

Changes in accumulated other comprehensive income (loss) by component and related tax effects for the years ended October 31, 2016 and 2015 were as follows (in millions):

							Net defined benefit pension cost and post retirement plan costs
	Unrealized gain on investments			Foreign currency translation			Prior service credits			Actuarial Losses			Unrealized gains (losses) on derivatives			Total
	(in millions)
As of October 31, 2014	$	17		$	156		$	255		$	(771	)	$	9		$	(334	)
Transfer to Keysight	(17		)	(9		)	(83		)	444			(3		)	332
Balance after transfer to Keysight	—			147			172			(327		)	6			(2		)
Other comprehensive income (loss) before reclassifications	—			(360		)	—			(90		)	11			(439		)
Amounts reclassified out of accumulated other comprehensive income	—			—			(17		)	35			(18		)	—
Tax benefit	—			24			6			17			3			50
Other comprehensive loss	—			(336		)	(11		)	(38		)	(4		)	(389		)
As of October 31, 2015	$	—		$	(189	)	$	161		$	(365	)	$	2		$	(391	)
Other comprehensive income (loss) before reclassifications	—			(5		)	6			(171		)	(10		)	(180		)
Amounts reclassified out of accumulated other comprehensive income	—			—			(29		)	43			3			17
Tax (expense) benefit	—			(3		)	8			42			4			51
Other comprehensive loss	—			(8		)	(15		)	(86		)	(3		)	(112		)
As of October 31, 2016	$	—		$	(197	)	$	146		$	(451	)	$	(1	)	$	(503	)

Reclassifications out of accumulated other comprehensive income (loss) for the years ended October 31, 2016 and 2015 were as follows (in millions):

Details about accumulated other	Amounts Reclassified						Affected line item in
comprehensive income components	from other comprehensive income						statement of operations
	2016			2015
Unrealized gains and (losses) on derivatives	(3		)	18			Cost of products
	(3		)	18			Total before income tax
	—			(6		)	(Provision)/benefit for income tax
	(3		)	12			Total net of income tax
Net defined benefit pension cost and post retirement plan costs:
Actuarial net loss	(43		)	(35		)
Prior service benefit	29			17
	(14		)	(18		)	Total before income tax
	4			5			(Provision)/benefit for income tax
	(10		)	(13		)	Total net of income tax
Total reclassifications for the period	$	(13	)	$	(1	)

Amounts in parentheses indicate reductions to income and increases to other comprehensive income.

Reclassifications of prior service benefit and actuarial net loss in respect of retirement plans and post retirement pension plans are included in the computation of net periodic cost (see Note 13 "Retirement Plans and Post Retirement Pension Plans").