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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 6 Months Ended
May. 01, 2016
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 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 25, 2015
$
14

 
$
(15
)
 
$
(105
)
 
$
14

 
$
(92
)
Other comprehensive income (loss) before reclassifications
4

 
(14
)
 
—

 
—

 
(10
)
Amounts reclassified out of AOCI
—

 
7

 
—

 
—

 
7

Other comprehensive income (loss), net of tax
4

 
(7
)
 
—

 
—

 
(3
)
Balance at May 1, 2016
$
18

 
$
(22
)
 
$
(105
)
 
$
14

 
$
(95
)


 
Unrealized Gain 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 26, 2014
$
24

 
$
—

 
$
(105
)
 
$
5

 
$
(76
)
Other comprehensive income (loss) before reclassifications
(4
)
 
3

 
(45
)
 
(2
)
 
(48
)
Amounts reclassified out of AOCI
—

 
(3
)
 
2

 
—

 
(1
)
Other comprehensive income (loss), net of tax
(4
)
 
—

 
(43
)
 
(2
)
 
(49
)
Balance at April 26, 2015
$
20

 
$
—

 
$
(148
)
 
$
3

 
$
(125
)
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for the three and six months ended May 1, 2016:
 
Three Months Ended
 
Six Months Ended
 
May 1,
2016
 
May 1,
2016
 
 
 
 
 
(in millions, except per share amount)
Shares of common stock repurchased
45.1

 
80.5

Cost of stock repurchased
$
900

 
$
1,525

Average price paid per share
$
19.93

 
$
18.92
Effect of share-based compensation on the results of operations
The effect of share-based compensation on the results of operations was as follows:
 
 
Three Months Ended
 
Six Months Ended
 
May 1,
2016
 
April 26,
2015
 
May 1,
2016
 
April 26,
2015
 
 
 
 
 
 
 
 
 
(In millions)
Cost of products sold
$
15

 
$
14

 
$
32

 
$
29

Research, development, and engineering
18

 
17

 
38

 
35

Marketing and selling
6

 
7

 
13

 
13

General and administrative
9

 
9

 
19

 
18

Total share-based compensation
$
48

 
$
47

 
$
102

 
$
95
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 during the six months ended May 1, 2016 is presented below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
 
 
 
 
(In millions, except per share amounts)
Outstanding at October 25, 2015
27

 
$
16.41

Granted
11

 
$
18.27

Vested
(10
)
 
$
14.24

Canceled
(1
)
 
$
17.43

Outstanding at May 1, 2016
27

 
$
17.94
Schedule of valuation assumptions
Underlying assumptions used in the model are outlined in the following table:
 
Three and Six Months Ended
 
May 1, 2016
 
April 26, 2015
ESPP:
 
 
 
Dividend yield
2.07%
 
1.56%
Expected volatility
29.8%
 
31.4%
Risk-free interest rate
0.49%
 
0.07%
Expected life (in years)
0.5
 
0.5
Weighted average estimated fair value
$4.47
 
$6.04