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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 12 Months Ended
Oct. 28, 2018
Equity [Abstract]  
Components of accumulated other comprehensive income, net of tax
Changes in the components of accumulated other comprehensive income (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 25, 2015
$
14

 
$
(15
)
 
$
(105
)
 
$
14

 
(92
)
Other comprehensive income (loss) before reclassifications
14

 
(33
)
 
(42
)
 
—

 
(61
)
Amounts reclassified out of AOCI
2

 
30

 
6

 
—

 
38

Other comprehensive income (loss), net of tax
16

 
(3
)
 
(36
)
 
—

 
(23
)
Balance at October 30, 2016
$
30

 
$
(18
)
 
$
(141
)
 
$
14

 
$
(115
)
Other comprehensive income (loss) before reclassifications
24

 
13

 
29

 
—

 
66

Amounts reclassified out of AOCI
(1
)
 
(6
)
 
(8
)
 
—

 
(15
)
Other comprehensive income, net of tax
23

 
7

 
21

 
—

 
51

Balance at October 29, 2017
$
53

 
$
(11
)
 
$
(120
)
 
$
14

 
$
(64
)
Adoption of new accounting standards (a)
5

 
(2
)
 
—

 
—

 
3

 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(66
)
 
5

 
(23
)
 
—

 
(84
)
Amounts reclassified out of AOCI
15

 
(1
)
 
6

 
—

 
20

Other comprehensive income (loss), net of tax
(51
)
 
4

 
(17
)
 
—

 
(64
)
Balance at October 28, 2018
$
7

 
$
(9
)
 
$
(137
)
 
$
14

 
$
(125
)

(a) - Represents the reclassification adjustment related to the early adoption of Accounting Standards Update (ASU) 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. See Note 1.
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for each fiscal year:
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(In millions, except per share amounts)
Shares of common stock repurchased
102

 
28

 
96

Cost of stock repurchased
$
5,283

 
$
1,172

 
$
1,892

Average price paid per share
$
51.55

 
$
42.08

 
$
19.82
Total share-based compensation and related tax benefits
Applied recognized 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:
 
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(In millions)
Share-based compensation
$
258

 
$
220

 
$
201

Tax benefit recognized
$
45

 
$
60

 
$
63
Effect of share-based compensation on the results of operations by expense type
The effect of share-based compensation on the results of operations for each fiscal year was as follows:
 
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
(In millions)
Cost of products sold
$
87

 
$
69

 
$
62

Research, development, and engineering
96

 
83

 
76

Marketing and selling
31

 
28

 
26

General and administrative
44

 
40

 
37

Total share-based compensation
$
258

 
$
220

 
$
201
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 25, 2015
27

 
$
16.41

 
2.2 years
 
$
440

Granted
11

 
$
18.54

 
 
 
 
Vested
(11
)
 
$
14.25

 
 
 
 
Canceled
(2
)
 
$
17.57

 
 
 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 30, 2016
25

 
$
18.28

 
2.3 years
 
$
718

Granted
8

 
$
31.79

 
 
 
 
Vested
(10
)
 
$
16.50

 
 
 
 
Canceled
(1
)
 
$
21.25

 
 
 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 29, 2017
22

 
$
23.96

 
2.2 years
 
$
1,239

Granted
6

 
$
50.62

 
 
 
 
Vested
(9
)
 
$
22.15

 
 
 
 
Canceled
(1
)
 
$
30.19

 
 
 
 
Non-vested restricted stock units, restricted stock, performance shares and performance units at October 28, 2018
18

 
$
32.64

 
2.0 years
 
$
600

Non-vested restricted stock units, restricted stock, performance shares and performance units expected to vest
16

 
$
31.11

 
1.9 years
 
$
523
Significant valuation assumptions in relation to ESPP
Underlying assumptions used in the model are outlined in the following table:
 
 
2018
 
2017
 
2016
ESPP:
 
 
 
 
 
Dividend yield
1.68
%
 
0.99
%
 
1.76
%
Expected volatility
34.4
%
 
26.3
%
 
29.3
%
Risk-free interest rate
2.09
%
 
0.92
%
 
0.47
%
Expected life (in years)
0.5

 
0.5

 
0.5

Weighted average estimated fair value
$12.02
 
$9.14
 
$5.48