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Stock-Based Compensation (Tables)
 6 Months Ended
Apr. 30, 2017
Share-based compensation  
Schedule of stock based compensation expense and the resulting tax benefits
Stock-based compensation expense and the resulting tax benefits were as follows:
 
Three Months Ended
April 30,
 
Six Months Ended
April 30,
 
2017
 
2016
 
2017
 
2016
 
In millions
Stock-based compensation expense from continuing operations
$
126

 
$
103

 
$
278

 
$
230

Income tax benefit
(41
)
 
(30
)
 
(89
)
 
(67
)
Stock-based compensation expense from continuing operations, net of tax
$
85

 
$
73

 
$
189

 
$
163

Stock-based compensation expense from discontinued operations
$
78

 
$
35

 
$
100

 
$
73
Schedule of restricted stock award activity
A summary of restricted stock unit activity is as follows:
 
Six Months Ended
April 30, 2017
 
Shares
 
Weighted-Average Grant Date Fair Value Per Share
 
In thousands
 
 
Outstanding at beginning of period
57,321

 
$
15

Granted and assumed through acquisition(1)
21,405

 
$
21

Additional shares granted due to conversion(2)
12,902

 
$
18

Vested(3)
(36,473
)
 
$
16

Forfeited/canceled(4)
(2,079
)
 
$
17

Outstanding at end of period
53,076

 
$
18

 
(1)
Includes approximately 11 million restricted stock units assumed by the Company through acquisition with a weighted-average grant date fair value of $18 per share.
(2)
Additional shares granted as a result of the post-spin exercise price adjustments made related to the Everett Transaction, in order to preserve the intrinsic value of the awards prior to the close of the transaction.
(3)
Includes approximately 9 million restricted stock units, with a weighted-average grant date fair value of $18 per share, which were accelerated as part of the Everett Transaction.
(4)
Includes approximately 0.3 million restricted stock units, with a weighted-average grant date fair value of $18 per share, related to the former ES segment, which were canceled by HPE and assumed by DXC in connection with the Everett Transaction and in accordance with the Employee Matters Agreement.
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:
 
Six Months Ended
April 30, 2017
Weighted-average fair value(1)
$
6

Expected volatility(2)
25.7
%
Risk-free interest rate(3)
2.0
%
Expected dividend yield(4)
1.0
%
Expected term in years(5)
6.1

 
(1)
The weighted-average fair value was based on the fair value of stock options granted during the period. There were no stock options granted during the three months ended April 30, 2017.
(2)
The expected volatility was estimated using the average historical volatility of selected peer companies.
(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 award.
(5)
For awards subject to service-based vesting, the expected term was estimated using the simplified method detailed in SEC Staff Accounting Bulletin No. 110, for performance-contingent awards the expected term represents an output from the lattice model.
Schedule of stock option activity
A summary of stock option activity is as follows:
 
Six months ended April 30, 2017
 
Shares
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
 
In thousands
 
 
 
In years
 
In millions
Outstanding at beginning of period
57,498

 
$
15

 
 
 
 

Granted and assumed through acquisition
5,242

 
$
24

 
 
 
 

Additional shares granted due to conversion(1)
12,574

 
$
12

 
 
 
 
Exercised
(16,281
)
 
$
14

 
 
 
 

Forfeited/canceled/expired(2)
(8,389
)
 
$
16

 
 
 
 

Outstanding at end of period(3)
50,644

 
$
12

 
5.0
 
$
329

Vested and expected to vest at end of period(3)
49,682

 
$
12

 
5.0
 
$
324

Exercisable at end of period(3)
28,811

 
$
11

 
3.7
 
$
224

 
(1)
Additional shares granted as a result of the post-spin exercise price adjustments made related to the Everett Transaction, in order to preserve the intrinsic value of the awards prior to the close of the transaction.
(2)
Includes approximately 8 million stock options, with a weighted-average exercise price of $16 per share, related to the former ES segment, which were canceled by HPE and assumed by DXC in connection with the Everett Transaction and in accordance with the Employee Matters Agreement.
(3)
The weighted average exercise price reflects the impact of the post-spin adjustment to the exercise price related to the Everett Transaction.