
	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 31, 2021	$	(1)	$	(103)	$	(169)	$	13	(260)


Other comprehensive income (loss) before reclassifications	(60)		100		71		—		111
Amounts reclassified out of AOCI	(14)		(49)		10		—		(53)
Other comprehensive income (loss), net of tax	(74)		51		81		—		58
Balance at October 30, 2022	$	(75)	$	(52)	$	(88)	$	13	$	(202)


Other comprehensive income (loss) before reclassifications	16		(44)		17		—		(11)
Amounts reclassified out of AOCI	9		(22)		9		—		(4)
Other comprehensive income, net of tax	25		(66)		26		—		(15)
Balance at October 29, 2023	$	(50)	$	(118)	$	(62)	$	13	$	(217)


Other comprehensive income (loss) before reclassifications	34		28		—		—		62
Amounts reclassified out of AOCI	9		3		(25)		—		(13)
Other comprehensive income (loss), net of tax	43		31		(25)		—		49
Balance at October 27, 2024	$	(7)	$	(87)	$	(87)	$	13	$	(168)

In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program.


	2024		2023		2022

	(In millions, except per share amounts)
Shares of common stock repurchased	20		18		54
Cost of stock repurchased (including excise tax)*	$	3,851	$	2,202	$	6,103
Average price paid per share (including excise tax)*	$	190.27	$	123.63	$	113.84
Cost of stock repurchased (excluding excise tax)	$	3,823	$	2,189	$	6,103
Average price paid per share (excluding excise tax)	$	188.87	$	122.89	$	113.84

(*) Effective January 1, 2023, stock repurchase amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable.

We record treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If we reissue treasury stock at an amount below our acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings.

During fiscal 2024, our Board of Directors declared one quarterly cash dividend of $0.32 per share and three quarterly cash dividends of $0.40 per share. During fiscal 2023, our Board of Directors declared one quarterly cash dividend of $0.26 per share and three quarterly cash dividends of $0.32 per share. During fiscal 2022, our Board of Directors declared one quarterly cash dividend of $0.24 per share and three quarterly cash dividends of $0.26 per share. Dividends paid during fiscal 2024, 2023 and 2022 amounted to $1.2 billion, $975 million and $873 million, respectively. We currently anticipate that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of our stockholders.

We have a stockholder-approved equity plan, the Employee Stock Incentive Plan (ESIP), which permits grants to employees of share-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units and performance units. In addition, the plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to non-employee directors and consultants. Share-based awards made under the plan may be subject to accelerated vesting under certain circumstances in the event of a change in control. In addition, we have an Omnibus Employees’ Stock Purchase Plan (ESPP), which enables eligible employees to purchase our common stock.


	2024		2023		2022

	(In millions)
Cost of products sold	$	134	$	180	$	147
Research, development, and engineering	219		179		151
Marketing and selling	72		55		49
General and administrative	152		76		66

Total share-based compensation	$	577	$	490	$	413

Income tax benefits recognized	$	73	$	63	$	51

The cost associated with share-based awards is typically recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. However, in the case of share-based awards granted to certain members of senior management that allow for partial accelerated vesting in the event of a qualifying retirement based on age and years of service, the compensation expense is recognized once the individual meets the conditions for a qualifying retirement. We calculate estimated forfeiture rate on an annual basis, based on historical forfeiture activities. The cost associated with performance-based equity awards, which include performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of performance-based equity awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of performance-based equity awards subject to market goals is recognized based on the assumption of 100% achievement of the goal.

At October 27, 2024, we had $911 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards under the ESIP and shares issued under the ESPP, which will be recognized over a weighted average period of 2.4 years. At October 27, 2024, there were 21 million shares available for grant of share-based awards under the ESIP, and an additional 10 million shares available for issuance under the ESPP.

Restricted stock units are converted into shares of our common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of our common stock except these shares generally have no right to dividends and are held in escrow until the award vests. Performance share units and performance units are awards that result in a payment to a grantee, generally in shares of our common stock on a one-for-one basis, if performance goals, market goals and/or other vesting criteria are achieved or the awards otherwise vest. Restricted stock units, restricted stock, performance share units and performance units typically vest over three to four years and vesting is usually subject to the grantee’s continued service with us and, in some cases, achievement of specified performance and/or market goals.

The compensation expense related to share-based awards subject solely to time-based vesting requirements (Service-Based Awards) is determined using the market value of our common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of our common stock is calculated using the closing price of our common stock on the date of grant, or if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date.

During fiscal 2024, 2023 and 2022, certain members of senior management were granted awards that are subject to the achievement of certain levels of specified performance and market goals, in addition to time-based vesting requirements (Performance Based-Awards). These Performance-Based Awards are subject to the achievement of targeted levels of adjusted operating margin and targeted levels of total shareholder return (TSR) relative to the TSR of the companies in the Standard & Poor’s 500 Index. Each of these two metrics will be weighted 50% and will be measured over a three-year period. The number of shares that may vest in full after three years ranges from 0% to 200% of the target amount. The awards become eligible to vest only if the goals are achieved and will vest only if the grantee remains employed by us through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The awards provide for a partial vesting based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement.

The fair value of the portion of the Performance-Based Awards subject to targeted levels of relative TSR is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures.

The fair value of the portion of the Performance-Based Awards subject to targeted levels of adjusted operating margin is estimated on the date of grant based on the market value of our common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of our common stock is calculated using the closing price of our common stock on the date of the grant or, if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures.


	2024	2023	2022
Service-Based Awards and the portion of Performance-Based Awards subject to performance goals:
Grant date market value	$148.39 - $241.26	$104.22 - $143.97	$74.62 - $157.29
Risk-free interest rate	3.48% - 5.37%	3.64% - 5.48%	0.16% - 4.48%
Dividend yield	0.72% - 2.62%	0.70% - 3.59%	0.47% - 3.83%
Fair value	$144.79 - $237.94	$102.09 - $141.33	$72.24 - $154.88


	2024	2023	2022
Portion of Performance-Based Awards subject to market goals:
Grant date market value	$148.39 - $173.89	$109.37	$146.49
Risk-free interest rate	4.24% - 4.30%	4.10%	0.87%
Dividend yield	0.74% - 0.86%	0.95%	0.66%
Expected volatility	40.99% - 43.35%	52.38%	47.35%
Fair value	$195.32 - $249.37	$162.72	$210.69


	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 share units and performance units at October 29, 2023	12	$	106.24
Granted	4	$	149.20
Vested	(5)	$	97.50
Canceled	(1)	$	120.91
Non-vested restricted stock units, restricted stock, performance share units and performance units at October 27, 2024	10	$	129.31	2.3 years	$	1,931
Non-vested restricted stock units, restricted stock, performance share units and performance units expected to vest	10	$	130.71	2.2 years	$	1,903

A summary of the weighted-average grant date fair value per share of the granted restricted stock units, restricted stock, performance share units and performance units and total fair value vested awards for indicated periods is presented below:

Under the ESPP, substantially all employees may purchase our common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of our common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Our purchasing cycles began in March and September of each of fiscal 2024, 2023 and 2022. We issued 2 million shares in fiscal 2024 at a weighted average price of $147.38 per share, 2 million shares in fiscal 2023 at a weighted average price of $87.75 per share and 2 million shares in fiscal 2022 at a weighted average price of $93.30 per share, under the ESPP. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table:


	2024		2023		2022
ESPP:
Dividend yield	0.82	%	0.98	%	0.97	%
Expected volatility	40.1	%	39.4	%	46.8	%
Risk-free interest rate	5.03	%	5.29	%	2.24	%
Expected life (in years)	0.5		0.5		0.5
Weighted average estimated fair value	$52.31		$35.31		$30.23