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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables)
 6 Months Ended
Apr. 28, 2019
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 as of October 28, 2018
$
7

 
$
(9
)
 
$
(137
)
 
$
14

 
$
(125
)
 Adoption of new accounting standards (a)
(17
)
 
—

 
—

 
—

 
(17
)
 
 
 
 
 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
13

 
(4
)
 
—

 
(1
)
 
8

   Amounts reclassified out of AOCI
—

 
(4
)
 
—

 
—

 
(4
)
Other comprehensive income (loss), net of tax
13

 
(8
)
 
—

 
(1
)
 
4

 
 
 
 
 
 
 
 
 
 
Balance as of April 28, 2019
$
3

 
$
(17
)
 
$
(137
)
 
$
13

 
$
(138
)

(a) - Represents the reclassification adjustment related to the adoption of Accounting Standard Update (ASU) 2016-01 Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities in the first quarter of fiscal 2019. See Note 1.
 
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 as of October 29, 2017
$
53

 
$
(11
)
 
$
(120
)
 
$
14

 
$
(64
)
Other comprehensive income (loss) before reclassifications
(3
)
 
(13
)
 
—

 
—

 
(16
)
Amounts reclassified out of AOCI
2

 
2

 
(2
)
 
—

 
2

Other comprehensive income (loss), net of tax
(1
)
 
(11
)
 
(2
)
 
—

 
(14
)
Balance as of April 29, 2018
$
52

 
$
(22
)
 
$
(122
)
 
$
14

 
$
(78
)
Summary of stock repurchases
The following table summarizes Applied’s stock repurchases for the three and six months ended April 28, 2019 and April 29, 2018:
 
Three Months Ended
 
Six Months Ended
 
April 28,
2019
 
April 29,
2018
 
April 28,
2019
 
April 29,
2018
 
 
 
 
 
 
 
 
 
(in millions, except per share amount)
Shares of common stock repurchased
16

 
44

 
38

 
59

Cost of stock repurchased
$
625

 
$
2,500

 
$
1,375

 
$
3,282

Average price paid per share
$
39.91

 
$
56.35

 
$
36.48

 
$
55.62
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 28,
2019
 
April 29,
2018
 
April 28,
2019
 
April 29,
2018
 
 
 
 
 
 
 
 
 
(In millions)
Cost of products sold
$
22

 
$
21

 
$
44

 
$
43

Research, development and engineering
25

 
24

 
49

 
48

Marketing and selling
7

 
8

 
15

 
16

General and administrative
11

 
11

 
22

 
22

Total share-based compensation
$
65

 
$
64

 
$
130

 
$
129
Restricted stock units and restricted stock activity
A summary of the changes in any restricted stock units, restricted stock, performance shares and performance units outstanding under Applied’s equity compensation plans during the six months ended April 28, 2019 is presented below:
 
Shares
 
Weighted
Average
Grant Date
Fair Value
 
 
 
 
 
(In millions, except per share amounts)
Outstanding as of October 28, 2018
18

 
$
32.64

Granted
7

 
$
35.42

Vested
(7
)
 
$
28.09

Canceled
—

 
$
33.52

Outstanding as of April 28, 2019
18

 
$
35.47
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
Underlying assumptions used in the model are outlined in the following table:
 
 
 
 
 
Three and Six Months Ended
 
April 28, 2019
 
April 29, 2018
ESPP:
 
 
 
Dividend yield
2.18%
 
1.40%
Expected volatility
37.1%
 
35.5%
Risk-free interest rate
2.51%
 
1.83%
Expected life (in years)
0.5
 
0.5
Weighted average estimated fair value
$9.78
 
$14.26