Stock-Based Compensation (Tables)

12 Months Ended

Oct. 31, 2016

Schedule of stock based compensation expense and the resulting tax benefits

Stock-based compensation expense and the resulting tax benefits recognized by the Company were as follows:



	Fiscal years ended October 31,
	2016			2015			2014
	In millions
Stock-based compensation expense	$	597		$	565		$	427
Income tax benefit	(181		)	(165		)	(141		)
Stock-based compensation expense, net of tax	$	416		$	400		$	286

Schedule of restricted stock award activity

For fiscal 2016, the activity summarized in the table below is related to restricted stock held by Company employees under the Plan. For fiscal 2015 and 2014, the activity summarized in the table below is related to restricted stock held by Company employees under former Parent's Plans.



	Fiscal years ended October 31,
	2016				2015				2014
	Shares		Weighted- Average Grant Date Fair Value Per Share		Shares		Weighted- Average Grant Date Fair Value Per Share		Shares		Weighted- Average Grant Date Fair Value Per Share
	In thousands				In thousands				In thousands
Outstanding at beginning of year	—		$	—	24,496		$	24	18,170		$	20
Converted from former Parent's plan	42,012		$	15	—		$	—	—		$	—
Granted and assumed through acquisition⁽¹⁾	32,752		$	15	19,601		$	35	15,820		$	28
Vested	(12,747	)	$	15	(21,860	)	$	26	(7,893	)	$	24
Forfeited	(4,696	)	$	15	(1,819	)	$	30	(1,601	)	$	22
Employee transition⁽²⁾	—		$	—	3,982		$	33	—		$	—
Outstanding at end of year	57,321		$	15	24,400		$	32	24,496		$	24

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(1)	Includes a one-time restricted stock unit retention grant of approximately 5 million shares in fiscal 2016.


(2)	The Employee transition amounts consist of restricted stock award activity for employees transitioning between the Company and former Parent.

Stock Options

Share-based compensation

Schedule of weighted-average fair value and the assumptions used to measure fair value

The weighted-average fair value and the assumptions used to measure fair value were as follows:



	Fiscal years ended October 31,
	2016			2015			2014
Weighted-average fair value⁽¹⁾	$	4		$	8		$	7
Expected volatility⁽²⁾	31.1		%	26.8		%	33.1		%
Risk-free interest rate⁽³⁾	1.7		%	1.7		%	1.8		%
Expected dividend yield⁽⁴⁾	1.5		%	1.8		%	2.1		%
Expected term in years⁽⁵⁾	5.4			5.9			5.7

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(1)	For fiscal 2016, the weighted-average fair value was based on stock options granted under the Plan during the period. For fiscal 2015 and 2014, the weighted-average fair value was based on stock options granted under former Parent's Plan during the respective periods.

(2)

For options granted in fiscal 2016, expected volatility was estimated using the average historical volatility of selected peer companies. For options granted in fiscal 2015, expected volatility was estimated using the implied volatility derived from options traded on former Parent's common stock. For options granted in fiscal 2014, expected volatility for options subject to service-based vesting was estimated using the implied volatility derived from options traded on former Parent's common stock, whereas for performance-contingent options, expected volatility was estimated using the historical volatility of former Parent's common stock.


(3)	The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.


(4)	The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the option.

(5)

For options granted in fiscal 2016 subject to service-based vesting, the expected term was estimated using the simplified method detailed in SEC Staff Accounting Bulletin No. 110. For options granted in fiscal 2015 and 2014 subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns. For performance-contingent options, the expected term represents an output from the lattice model.

Schedule of stock options activity

For fiscal 2016, the activity summarized in the table below is related to stock options held by Company employees under the Plan. For fiscal 2015 and 2014, the activity summarized in the table below is related to stock options held by Company employees under former Parent's Plan.



	Fiscal years ended October 31,
	2016							2015							2014
	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value		Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value		Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
	In thousands				In years	In millions		In thousands				In years	In millions		In thousands				In years	In millions
Outstanding at beginning of year	—		$	—				24,472		$	27				37,433		$	26
Converted from former Parent's plan	42,579		$	15				—		$	—				—		$	—
Granted and assumed through acquisitions⁽¹⁾	25,390		$	15				3,147		$	37				4,255		$	28
Exercised	(7,845	)	$	11				(5,716	)	$	18				(5,533	)	$	18
Forfeited/cancelled/expired	(2,626	)	$	20				(7,116	)	$	40				(11,683	)	$	37
Employee transition⁽²⁾	—		$	—				11,391		$	26				—		$	—
Outstanding at end of year	57,498		$	15	5.4	$	437	26,178		$	26	5.2	$	115	24,472		$	27	4.2	$	272
Vested and expected to vest at end of year	55,716		$	15	5.3	$	425	25,309		$	26	5.2	$	115	23,152		$	27	4.0	$	252
Exercisable at end of year	26,204		$	13	3.8	$	241	18,767		$	23	4.7	$	109	14,174		$	31	2.5	$	119

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(1)	Includes one-time stock option retention grant of approximately 16 million shares in fiscal 2016.


(2)	Employee transition amounts consist of option activity for employees transitioning between the Company and former Parent.

Schedule of significant ranges of outstanding and exercisable stock options

The following table summarizes significant ranges of outstanding and exercisable stock options:



	As of October 31, 2016
	Options Outstanding				Options Exercisable
Range of Exercise Prices	Shares Outstanding	Weighted- Average Remaining Contractual Term	Weighted- Average Exercise Price		Shares Exercisable	Weighted- Average Exercise Price
	In thousands	In years			In thousands
$0-$9.99	7,321	3.7	$	8	8,905	$	8
$10-$19.99	39,881	5.7	$	15	13,289	$	14
$20-$29.99	10,296	5.2	$	21	4,010	$	22
	57,498	5.4	$	15	26,204	$	13