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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 6 Months Ended
Apr. 30, 2017
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 30, 2016
$
30

 
$
(18
)
 
$
(141
)
 
$
14

 
$
(115
)
Other comprehensive income (loss) before reclassifications
14

 
3

 
—

 
—

 
17

Amounts reclassified out of AOCI
1

 
(3
)
 
(10
)
 
—

 
(12
)
Other comprehensive income (loss), net of tax
15

 
—

 
(10
)
 
—

 
5

Balance at April 30, 2017
$
45

 
$
(18
)
 
$
(151
)
 
$
14

 
$
(110
)


 
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
)
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for the three and six months ended April 30, 2017 and May 1, 2016:
 
Three Months Ended
 
Six Months Ended
 
April 30,
2017
 
May 1,
2016
 
April 30,
2017
 
May 1,
2016
 
 
 
 
 
 
 
 
 
(in millions, except per share amount)
Shares of common stock repurchased
7.4

 
45.1

 
11.5

 
80.5

Cost of stock repurchased
$
282

 
$
900

 
$
412

 
$
1,525

Average price paid per share
$
38.15

 
$
19.93

 
$
35.89

 
$
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
 
April 30,
2017
 
May 1,
2016
 
April 30,
2017
 
May 1,
2016
 
 
 
 
 
 
 
 
 
(In millions)
Cost of products sold
$
16

 
$
15

 
$
33

 
$
32

Research, development, and engineering
21

 
18

 
41

 
38

Marketing and selling
7

 
6

 
14

 
13

General and administrative
9

 
9

 
19

 
19

Total share-based compensation
$
53

 
$
48

 
$
107

 
$
102
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 April 30, 2017 is presented below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
 
 
 
 
(In millions, except per share amounts)
Outstanding at October 30, 2016
25

 
$
18.28

Granted
7

 
$
30.70

Vested
(9
)
 
$
16.29

Canceled
(1
)
 
$
20.07

Outstanding at April 30, 2017
22

 
$
23.16
Schedule of Employee Stock Purchase Plan Valuation Assumptions
Underlying assumptions used in the model are outlined in the following table:
 
 
 
 
 
Three and Six Months Ended
 
April 30, 2017
 
May 1, 2016
ESPP:
 
 
 
Dividend yield
1.09%
 
2.07%
Expected volatility
24.9%
 
29.8%
Risk-free interest rate
0.78%
 
0.49%
Expected life (in years)
0.5
 
0.5
Weighted average estimated fair value
$8.08
 
$4.47