Stock-Based Compensation (Tables)
|
12 Months Ended |
Oct. 31, 2016 |
|---|
| Share-based compensation |
|
| Schedule of stock based compensation expense and the resulting tax benefits |
Stock-based compensation expense and the resulting tax benefits recognized by the Company were as follows: | | | | | | | | | | | | | | Fiscal years ended October 31, | | 2016 | | 2015 | | 2014 | | In millions | Stock-based compensation expense | $ | 597 |
| | $ | 565 |
| | $ | 427 |
| Income tax benefit | (181 | ) | | (165 | ) | | (141 | ) | Stock-based compensation expense, net of tax | $ | 416 |
| | $ | 400 |
| | $ | 286 |
|
|
| Schedule of restricted stock award activity |
For fiscal 2016, the activity summarized in the table below is related to restricted stock held by Company employees under the Plan. For fiscal 2015 and 2014, the activity summarized in the table below is related to restricted stock held by Company employees under former Parent's Plans. | | | | | | | | | | | | | | | | | | | | | | | Fiscal years ended October 31, | | 2016 | | 2015 | | 2014 | | Shares | | Weighted-
Average
Grant Date
Fair Value
Per Share | | Shares | | Weighted-
Average
Grant Date
Fair Value
Per Share | | Shares | | Weighted-
Average
Grant Date
Fair Value
Per Share | | In thousands | | | | In thousands | | | | In thousands | | | Outstanding at beginning of year | — |
| | $ | — |
| | 24,496 |
| | $ | 24 |
| | 18,170 |
| | $ | 20 |
| Converted from former Parent's plan | 42,012 |
| | $ | 15 |
| | — |
| | $ | — |
| | — |
| | $ | — |
| Granted and assumed through acquisition(1) | 32,752 |
| | $ | 15 |
| | 19,601 |
| | $ | 35 |
| | 15,820 |
| | $ | 28 |
| Vested | (12,747 | ) | | $ | 15 |
| | (21,860 | ) | | $ | 26 |
| | (7,893 | ) | | $ | 24 |
| Forfeited | (4,696 | ) | | $ | 15 |
| | (1,819 | ) | | $ | 30 |
| | (1,601 | ) | | $ | 22 |
| Employee transition(2) | — |
| | $ | — |
| | 3,982 |
| | $ | 33 |
| | — |
| | $ | — |
| Outstanding at end of year | 57,321 |
| | $ | 15 |
| | 24,400 |
| | $ | 32 |
| | 24,496 |
| | $ | 24 |
|
| | (1) | Includes a one-time restricted stock unit retention grant of approximately 5 million shares in fiscal 2016. |
| | (2) | The Employee transition amounts consist of restricted stock award activity for employees transitioning between the Company and former Parent. |
|
| Stock Options |
|
| Share-based compensation |
|
| Schedule of weighted-average fair value and the assumptions used to measure fair value |
The weighted-average fair value and the assumptions used to measure fair value were as follows: | | | | | | | | | | | | | | Fiscal years ended October 31, | | 2016 | | 2015 | | 2014 | Weighted-average fair value(1) | $ | 4 |
| | $ | 8 |
| | $ | 7 |
| Expected volatility(2) | 31.1 | % | | 26.8 | % | | 33.1 | % | Risk-free interest rate(3) | 1.7 | % | | 1.7 | % | | 1.8 | % | Expected dividend yield(4) | 1.5 | % | | 1.8 | % | | 2.1 | % | Expected term in years(5) | 5.4 |
| | 5.9 |
| | 5.7 |
|
_______________________________________________________________________________ | | (1) | For fiscal 2016, the weighted-average fair value was based on stock options granted under the Plan during the period. For fiscal 2015 and 2014, the weighted-average fair value was based on stock options granted under former Parent's Plan during the respective periods. |
| | (2) | For options granted in fiscal 2016, expected volatility was estimated using the average historical volatility of selected peer companies. For options granted in fiscal 2015, expected volatility was estimated using the implied volatility derived from options traded on former Parent's common stock. For options granted in fiscal 2014, expected volatility for options subject to service-based vesting was estimated using the implied volatility derived from options traded on former Parent's common stock, whereas for performance-contingent options, expected volatility was estimated using the historical volatility of former Parent's common stock. |
| | (3) | The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. |
| | (4) | The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the option. |
| | (5) | For options granted in fiscal 2016 subject to service-based vesting, the expected term was estimated using the simplified method detailed in SEC Staff Accounting Bulletin No. 110. For options granted in fiscal 2015 and 2014 subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns. For performance-contingent options, the expected term represents an output from the lattice model. |
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| Schedule of stock options activity |
For fiscal 2016, the activity summarized in the table below is related to stock options held by Company employees under the Plan. For fiscal 2015 and 2014, the activity summarized in the table below is related to stock options held by Company employees under former Parent's Plan. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal years ended October 31, | | 2016 | | 2015 | | 2014 | | Shares | | Weighted-
Average
Exercise
Price | | Weighted-
Average
Remaining
Contractual
Term | | Aggregate
Intrinsic
Value | | Shares | | Weighted-
Average
Exercise
Price | | Weighted-
Average
Remaining
Contractual
Term | | Aggregate
Intrinsic
Value | | Shares | | Weighted-
Average
Exercise
Price | | Weighted-
Average
Remaining
Contractual
Term | | Aggregate
Intrinsic
Value | | In thousands | | | | In years | | In millions | | In thousands | | | | In years | | In millions | | In thousands | | | | In years | | In millions | Outstanding
at beginning
of year | — |
| | $ | — |
| | | | | | 24,472 |
| | $ | 27 |
| | | | |
| | 37,433 |
| | $ | 26 |
| | | | |
| Converted from former Parent's plan | 42,579 |
| | $ | 15 |
| | | | | | — |
| | $ | — |
| | | | | | — |
| | $ | — |
| | | | | Granted and assumed through acquisitions(1) | 25,390 |
| | $ | 15 |
| | | | | | 3,147 |
| | $ | 37 |
| | | | |
| | 4,255 |
| | $ | 28 |
| | | | |
| Exercised | (7,845 | ) | | $ | 11 |
| | | | | | (5,716 | ) | | $ | 18 |
| | | | |
| | (5,533 | ) | | $ | 18 |
| | | | |
| Forfeited/cancelled/expired | (2,626 | ) | | $ | 20 |
| | | | | | (7,116 | ) | | $ | 40 |
| | | | |
| | (11,683 | ) | | $ | 37 |
| | | | |
| Employee transition(2) | — |
| | $ | — |
| | | | | | 11,391 |
| | $ | 26 |
| | | | | | — |
| | $ | — |
| | | | |
| Outstanding
at end
of year | 57,498 |
| | $ | 15 |
| | 5.4 | | $ | 437 |
| | 26,178 |
| | $ | 26 |
| | 5.2 | | $ | 115 |
| | 24,472 |
| | $ | 27 |
| | 4.2 | | $ | 272 |
| Vested and expected to
vest at end
of year | 55,716 |
| | $ | 15 |
| | 5.3 | | $ | 425 |
| | 25,309 |
| | $ | 26 |
| | 5.2 | | $ | 115 |
| | 23,152 |
| | $ | 27 |
| | 4.0 | | $ | 252 |
| Exercisable at end of year | 26,204 |
| | $ | 13 |
| | 3.8 | | $ | 241 |
| | 18,767 |
| | $ | 23 |
| | 4.7 | | $ | 109 |
| | 14,174 |
| | $ | 31 |
| | 2.5 | | $ | 119 |
|
_______________________________________________________________________________ | | (1) | Includes one-time stock option retention grant of approximately 16 million shares in fiscal 2016. |
| | (2) | Employee transition amounts consist of option activity for employees transitioning between the Company and former Parent. |
|
| Schedule of significant ranges of outstanding and exercisable stock options |
The following table summarizes significant ranges of outstanding and exercisable stock options: | | | | | | | | | | | | | | | | | | As of October 31, 2016 | | Options Outstanding | | Options Exercisable | Range of Exercise Prices | Shares
Outstanding | | Weighted-
Average
Remaining
Contractual Term | | Weighted-
Average
Exercise
Price | | Shares
Exercisable | | Weighted-
Average
Exercise
Price | | In thousands | | In years | | | | In thousands | | | $0-$9.99 | 7,321 |
| | 3.7 | | $ | 8 |
| | 8,905 |
| | $ | 8 |
| $10-$19.99 | 39,881 |
| | 5.7 | | $ | 15 |
| | 13,289 |
| | $ | 14 |
| $20-$29.99 | 10,296 |
| | 5.2 | | $ | 21 |
| | 4,010 |
| | $ | 22 |
| | 57,498 |
| | 5.4 | | $ | 15 |
| | 26,204 |
| | $ | 13 |
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