Stock-Based Compensation and Shareholders' Equity (Tables)

12 Months Ended

Nov. 02, 2019

Share-based Payment Arrangement [Abstract]

Information pertaining to the Company's stock option awards and the related estimated weighted-average assumptions used to calculate the fair value of stock options granted

Information pertaining to the Company’s stock option awards and the related estimated weighted-average assumptions to calculate the fair value of stock options using the Black-Scholes valuation model granted in fiscal 2018, fiscal 2017 and fiscal 2016 is as follows: 

Stock Options	2019		2018		2017
Options granted (in thousands)	454		603		1,480
Weighted-average exercise price	$107.11		$90.98		$82.99
Weighted-average grant-date fair value	$23.29		$20.82		$17.12
Assumptions:
Weighted-average expected volatility	26.4	%	27.7	%	26.4	%
Weighted-average expected term (in years)	5.0		5.0		5.1
Weighted-average risk-free interest rate	2.4	%	2.6	%	2.1	%
Weighted-average expected dividend yield	2.0	%	2.1	%	2.2	%

Share-based payment arrangement, expensed amount

Total stock-based compensation expense recognized is as follows:

	2019		2018		2017
Cost of sales	$	20,628	$	18,733	$	12,569
Research and development	75,305		81,444		51,258
Selling, marketing, general and administrative	51,829		50,988		40,361
Special charges	2,538		—		—
Total stock-based compensation expense	$	150,300	$	151,165	$	104,188

Summary of the activity under the Company's stock option plans

A summary of the activity under the Company’s stock option plans as of November 2, 2019 and changes during the fiscal year then ended is presented below: 

	Options Outstanding (in thousands)	Weighted- Average Exercise Price Per Share	Weighted- Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Options outstanding at November 3, 2018	7,297	$58.42
Options granted	454	$107.11
Options exercised	(2,364)	$49.67
Options forfeited	(198)	$78.05
Options expired	(6)	$21.97
Options outstanding at November 2, 2019	5,183	$65.97	5.9	$224,945
Options exercisable at November 2, 2019	2,933	$55.23	4.7	$158,789
Options vested or expected to vest at November 2, 2019 (1)	5,046	$65.42	5.9	$221,766

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(1)In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. The number of options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.

Summary of the company's restricted stock unit award activity

A summary of the Company’s restricted stock unit award activity as of November 2, 2019 and changes during the fiscal year then ended is presented below: 

	Restricted Stock Units/Awards Outstanding (in thousands)	Weighted- Average Grant- Date Fair Value Per Share
Restricted stock units/awards outstanding at November 3, 2018	5,289	$77.54
Units/Awards granted	1,317	$98.82
Restrictions lapsed	(1,896)	$69.38
Forfeited	(314)	$80.44
Restricted stock units/awards outstanding at November 2, 2019	4,396	$87.18