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Stockholders' Equity, Comprehensive Income and Share-Based Compensation (Tables) | 6 Months Ended
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Apr. 26, 2020
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 (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 27, 2019 | $ | 11 |  |  | $ | (16) |  |  | $ | (188) |  |  | $ | 13 |  |  | $ | (180) |
Other comprehensive income (loss) before reclassifications | 5 |  |  | (137) |  |  | — |  |  | — |  |  | (132) |
Amounts reclassified out of AOCI | (4) |  |  | 1 |  |  | — |  |  | — |  |  | (3) |
Other comprehensive income (loss), net of tax | 1 |  |  | (136) |  |  | — |  |  | — |  |  | (135) |
Balance as of April 26, 2020 | $ | 12 |  |  | $ | (152) |  |  | $ | (188) |  |  | $ | 13 |  |  | $ | (315) |
| 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 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.
Summary of stock repurchases | The following table summarizes Applied’s stock repurchases for the six months ended April 26, 2020 and April 28, 2019:
| Three Months Ended |  |  |  | Six Months Ended |  |
| April 26, 2020 |  | April 28, 2019 |  | April 26, 2020 |  | April 28, 2019
| (in millions, except per share amount) |  |  |  |  |  |
Shares of common stock repurchased | 4 |  |  | 16 |  |  | 7 |  |  | 38 |
Cost of stock repurchased | $ | 199 |  |  | $ | 625 |  |  | $ | 399 |  |  | $ | 1,375 |
Average price paid per share | $ | 50.14 |  |  | $ | 39.91 |  |  | $ | 54.06 |  |  | $ | 36.48 |
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 26, 2020 |  | April 28, 2019 |  | April 26, 2020 |  | April 28, 2019
| (In millions) |  |  |  |  |  |
Cost of products sold | $ | 24 |  |  | $ | 22 |  |  | $ | 55 |  |  | $ | 44 |
Research, development and engineering | 27 |  |  | 25 |  |  | 62 |  |  | 49 |
Marketing and selling | 8 |  |  | 7 |  |  | 19 |  |  | 15 |
General and administrative | 12 |  |  | 11 |  |  | 28 |  |  | 22 |
Total share-based compensation | $ | 71 |  |  | $ | 65 |  |  | $ | 164 |  |  | $ | 130 |
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 26, 2020 is presented below:
| Shares |  | Weighted Average Grant Date Fair Value |  |  |  |
| (In millions, except per share amounts) |  |  |  |  |  |
Outstanding as of October 27, 2019 | 18 |  |  | $ | 35.78 |  |  |  |  |
Granted | 5 |  |  | $ | 53.30 |  |  |  |  |
Vested | (8) |  |  | $ | 30.79 |  |  |  |  |
Canceled | — |  |  | $ | 41.31 |  |  |  |  |
Outstanding as of April 26, 2020 | 15 |  |  | $ | 44.53 |  |  |  |  |
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 26, 2020 |  | April 28, 2019
Dividend yield | 1.40% |  | 2.18%
Expected volatility | 37.2% |  | 37.1%
Risk-free interest rate | 1.05% |  | 2.51%
Expected life (in years) | 0.5 |  | 0.5
Weighted average estimated fair value | $15.24 |  | $9.78

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