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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 12 Months Ended
Oct. 25, 2015
Equity [Abstract]  
Components of accumulated other comprehensive loss, after-tax basis
Changes in the components of AOCI, net of tax, were as follows:
 
 
Unrealized Gain (Loss) on Investments, Net
 
Unrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow Hedges
 
Defined and Postretirement Benefit Plans
 
Cumulative Translation Adjustments
 
Total
 
(In millions)
Balance at October 27, 2013
$
25

 
$
2

 
$
(72
)
 
$
7

 
$
(38
)
Other comprehensive income (loss) before reclassifications
8

 
4

 
(36
)
 
(2
)
 
(26
)
Amounts reclassified out of AOCI
(9
)
 
(6
)
 
3

 
—

 
(12
)
Other comprehensive loss, net of tax
(1
)
 
(2
)
 
(33
)
 
(2
)
 
(38
)
Balance at October 26, 2014
$
24

 
$
—

 
$
(105
)
 
$
5

 
$
(76
)
Other comprehensive income (loss) before reclassifications
(11
)
 
(9
)
 
(5
)
 
—

 
(25
)
Amounts reclassified out of AOCI
1

 
(6
)
 
5

 
9

 
9

Other comprehensive income (loss), net of tax
(10
)
 
(15
)
 
—

 
9

 
(16
)
Balance at October 25, 2015
$
14

 
$
(15
)
 
$
(105
)
 
$
14

 
$
(92
)
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for each fiscal year:
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
(In millions, except per share amounts)
Shares of common stock repurchased
76

 
—

 
18

Cost of stock repurchased
$
1,325

 
—

 
$
245

Average price paid per share
$
17.33

 
—

 
$
13.60
Total share-based compensation and related tax benefits
Applied recognized total share-based compensation expense related to stock options, ESPP shares, restricted stock, restricted stock units, performance shares and performance units, and related tax benefits for each fiscal year as follows:
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
(In millions)
Share-based compensation
$
187

 
$
177

 
$
162

Tax benefit recognized
$
52

 
$
50

 
$
45
Effect of share-based compensation on the results of operations
The effect of share-based compensation on the results of operations for each fiscal year was as follows:
 
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
(In millions)
Cost of products sold
$
57

 
$
53

 
$
50

Research, development, and engineering
69

 
66

 
53

Marketing and selling
26

 
23

 
20

General and administrative
35

 
35

 
34

Restructuring charge
—

 
—

 
5

Total
$
187

 
$
177

 
$
162
Weighted average assumptions used for stock options granted and assumed
The weighted average assumptions used in the model for the stock options granted and assumed are outlined below:
 
2013
Stock Options:
 
Dividend yield
2.7
%
Expected volatility
29.5
%
Risk-free interest rate
1.44
%
Expected life (in years)
4.5
Information with repsect to stock options
Information with respect to stock options for each fiscal year is as follows:
 
2015
 
2014
 
2013
 
(In millions)
Aggregate intrinsic value of outstanding stock options
$
6

 
$
19

 
$
49

Total intrinsic value of stock options exercised
$
6

 
$
39

 
$
63

Total fair value of stock options vested
$
1

 
$
1

 
$
4

Cash received from stock option exercises
$
3

 
$
29

 
$
88

Actual tax benefit realized from options exercised
$
2

 
$
12

 
$
19
Stock option activity
Stock option activity during each fiscal year was as follows:
 
2015
 
2014
 
2013
 
Shares
 
Weighted
Average
Exercise
Price
 
Shares
 
Weighted
Average
Exercise
Price
 
Shares
 
Weighted
Average
Exercise
Price
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions, except per share amounts)
Outstanding, beginning of year
2

 
$
10.87

 
6

 
$
9.12

 
21

 
$
10.53

Granted and assumed in Varian acquisition
—

 
$
—

 
—

 
$
—

 
1

 
$
15.06

Exercised
(1
)
 
$
5.90

 
(4
)
 
$
7.85

 
(11
)
 
$
8.16

Canceled and forfeited
—

 
$
—

 
—

 
$
—

 
(5
)
 
$
17.62

Outstanding, end of year
1

 
$
12.45

 
2

 
$
10.87

 
6

 
$
9.12

Exercisable, end of year
1

 
$
10.98

 
1

 
$
7.97

 
5

 
$
7.90
Options outstanding and exercisable
The following table summarizes information with respect to options outstanding and exercisable at October 25, 2015:
 
 
Options Outstanding
 
Options Exercisable
Range of
Exercise Prices
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
 
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Aggregate
Intrinsic
Value
 
(In millions)
 
 
 
(In years)
 
(In millions)
 
(In millions)
 
 
 
(In millions)
$3.36 — $9.99
—

 
$
5.58

 
1.12
 
$
4

 
—

 
$
5.58

 
$
4

$10.00 — $15.06
1

 
$
15.03

 
4.80
 
2

 
1

 
$
15.00

 
1

 
1

 
$
12.45

 
3.79
 
$
6

 
1

 
$
10.98

 
$
5

Options exercisable and expected to become exercisable
1

 
$
12.45

 
3.79
 
$
6

 
 
 
 
 
 
Restricted stock units and restricted stock activity
A summary of the changes in restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans is presented below:
 
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
Weighted
Average
Remaining
Contractual Term
 
Aggregate
Intrinsic
Value
 
 
 
 
 
 
 
 
 
(In millions, except per share amounts)
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 28, 2012
36

 
$
11.53

 
2.6 years
 
$
376

Granted
19

 
$
10.55

 
 
 
 
Vested
(11
)
 
$
11.44

 
 
 
 
Canceled
(6
)
 
$
11.28

 
 
 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 27, 2013
38

 
$
11.11

 
2.4 years
 
$
662

Granted
11

 
$
16.58

 
 
 
 
Vested
(13
)
 
$
11.13

 
 
 
 
Canceled
(3
)
 
$
11.72

 
 
 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 26, 2014
33

 
$
12.59

 
2.3 years
 
$
698

Granted
10

 
$
22.60

 
 
 
 
Vested
(15
)
 
$
12.04

 
 
 
 
Canceled
(1
)
 
$
14.98

 
 
 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 25, 2015
27

 
$
16.41

 
2.2 years
 
$
440

Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest
24

 
$
15.93

 
2.0 years
 
$
402
Significant valuation assumptions in relation to ESPP
Underlying assumptions used in the model and the weighted average estimated fair value of purchase rights under the ESPP for each fiscal year are outlined in the following table:
 
 
2015
 
2014
 
2013
ESPP:
 
 
 
 
 
Dividend yield
2.20
%
 
1.96
%
 
2.80
%
Expected volatility
31.8
%
 
26.3
%
 
24.8
%
Risk-free interest rate
0.19
%
 
0.06
%
 
0.09
%
Expected life (in years)
0.5

 
0.5

 
0.5

Weighted average estimated fair value
$4.55
 
$4.56
 
$3.08