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Stock-Based Compensation (Tables)
 12 Months Ended
Oct. 31, 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:
 
Fiscal years ended October 31,
 
2017
 
2016
 
2015
 
In millions
Stock-based compensation expense from continuing operations
$
454

 
$
408

 
$
362

Income tax benefit
(159
)
 
(131
)
 
(106
)
Stock-based compensation expense from continuing operations, net of tax
$
295

 
$
277

 
$
256

Stock-based compensation expense from discontinued operations
$
166

 
$
189

 
$
203
Schedule of restricted stock award activity
For fiscal 2017 and 2016, the activity summarized in the table below is related to restricted stock units held by Company employees under the Plan. For fiscal 2015, the activity summarized in the table below is related to restricted stock units held by Company employees under former Parent's Plans.
 
Fiscal years ended October 31,
 
2017
 
2016
 
2015
 
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
57,321

 
$
15

 
—

 
$
—

 
24,496

 
$
24

Converted from former Parent's Plans
—

 
$
—

 
42,012

 
$
15

 
—

 
$
—

Granted and assumed through acquisition(1)
23,980

 
$
21

 
32,752

 
$
15

 
19,601

 
$
35

Additional shares granted due to post-spin adjustments(2)
25,543

 
$
9

 
—

 
$
—

 
—

 
$
—

Vested(3)
(51,976
)
 
$
16

 
(12,747
)
 
$
15

 
(21,860
)
 
$
26

Forfeited/canceled(4)
(6,351
)
 
$
16

 
(4,696
)
 
$
15

 
(1,819
)
 
$
30

Employee transition(5)
—

 
$
—

 
—

 
$
—

 
3,982

 
$
33,000,000

Outstanding at end of year
48,517

 
$
14

 
57,321

 
$
15

 
24,400

 
$
32

 
(1)
For fiscal 2017, 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. For fiscal 2016, includes a one-time restricted stock unit retention grant of approximately 5 million shares in fiscal 2016. For fiscal 2015, includes approximately 8 million shares of restricted stock units assumed through acquisition with a weighted-average grant date fair value of $33 per share.
(2)
Additional shares granted as a result of the post-spin exercise price adjustments made related to the Everett and Seattle Transactions, as permitted by the Plan, in order to preserve the intrinsic value of outstanding awards prior to the close of the transactions.
(3)
For fiscal 2017, includes approximately 14 million restricted stock units, with a weighted-average grant date fair value of $17 per share, which were accelerated as part of the Everett and Seattle Transactions.
(4)
For fiscal 2017, 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 and Software segments, which were canceled by HPE and assumed by DXC and Micro Focus in connection with the Everett and Seattle Transactions, and in accordance with the respective Employee Matters Agreements.
(5)
Employee transition amounts consist of restricted stock unit 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,
 
2017
 
2016
 
2015
Weighted-average fair value(1)
$
6

 
$
4

 
$
8

Expected volatility(2)
25.7
%
 
31.1
%
 
26.8
%
Risk-free interest rate(3)
2.0
%
 
1.7
%
 
1.7
%
Expected dividend yield(4)
1.0
%
 
1.5
%
 
1.8
%
Expected term in years(5)
6.1

 
5.4

 
5.9

 
(1)
For fiscal 2017 and 2016, the weighted-average fair value was based on the fair value of stock options granted under the Plan during the respective periods. For fiscal 2015, the weighted-average fair value was based on the fair value of stock options granted under former Parent's Plans during the period.
(2)
For options granted in fiscal 2017 and 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.
(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 2017 and 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 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 2017 and 2016, the activity summarized in the table below is related to stock options held by Company employees under the Plan. For fiscal 2015, the activity summarized in the table below is related to stock options held by Company employees under former Parent's Plans.
 
Fiscal years ended October 31,
 
2017
 
2016
 
2015
 
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
57,498

 
$
15

 
 
 
 
 
—

 
$
—

 
 
 
 

 
24,472

 
$
27

 
 
 
 

Converted from former Parent's Plans
—

 
$
—

 
 
 
 
 
42,579

 
$
15

 
 
 
 
 
—

 
$
—

 
 
 
 
Granted and assumed through acquisition(1)
6,074

 
$
23

 
 
 
 
 
25,390

 
$
15

 
 
 
 

 
3,147

 
$
37

 
 
 
 

Additional shares granted due to post-spin adjustments(2)
24,523

 
$
11

 
 
 
 
 
—

 
$
—

 
 
 
 
 
—

 
$
—

 
 
 
 
Exercised
(29,492
)
 
$
12

 
 
 
 
 
(7,845
)
 
$
11

 
 
 
 

 
(5,716
)
 
$
18

 
 
 
 

Forfeited/canceled/expired(3)
(9,329
)
 
$
16

 
 
 
 
 
(2,626
)
 
$
20

 
 
 
 

 
(7,116
)
 
$
40

 
 
 
 

Employee transition(4)
—

 
$
—

 
 
 
 
 
—

 
$
—

 
 
 
 
 
11,391

 
$
26

 
 
 
 

Outstanding at end of year(5)
49,274

 
$
10

 
4.6
 
$
207

 
57,498

 
$
15

 
5.4
 
$
437

 
26,178

 
$
26

 
5.2
 
$
115

Vested and expected to vest at end of year(5)
48,566

 
$
10

 
4.6
 
$
205

 
55,716

 
$
15

 
5.3
 
$
425

 
25,309

 
$
26

 
5.2
 
$
115

Exercisable at end of year(5)
24,736

 
$
9

 
3.0
 
$
123

 
26,204

 
$
13

 
3.8
 
$
241

 
18,767

 
$
23

 
4.7
 
$
109

 
(1)
For fiscal 2016, includes one-time stock option retention grant of approximately 16 million shares.
(2)
Additional shares granted as a result of the post-spin exercise price adjustments made related to the Everett and Seattle Transactions, as permitted by the Plan, in order to preserve the intrinsic value of the awards prior to the close of the transaction.
(3)
For fiscal 2017, includes approximately 8 million stock options, with a weighted-average exercise price of $16 per share, related to the former ES and Software segments, which were canceled by HPE in connection with the Everett and Seattle Transactions, and in accordance with the respective Employee Matters Agreements.
(4)
Employee transition amounts consist of option activity for employees transitioning between the Company and former Parent.
(5)
The weighted average exercise price reflects the impact of the post-spin adjustments to the exercise price related to the Everett and Seattle Transactions.
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, 2017
 
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
33,168

 
4.4
 
$
8

 
19,198

 
$
8

$10-$19.99
16,024

 
5.1
 
$
13

 
5,456

 
$
13

$20-$29.99
82

 
2.2
 
$
25

 
82

 
$
25

 
49,274

 
4.6
 
$
10

 
24,736

 
$
9