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Stock-Based Compensation | 12 Months Ended
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Oct. 29, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation The Company issues stock options, restricted stock units, restricted shares, and deferred stock units as part of its stock incentive plans for employees and nonemployee directors. Stock-based compensation expense for fiscal years 2023, 2022, and 2021, was $24.1 million, $24.9 million, and $24.7 million, respectively. The Company recognizes stock-based compensation expense ratably over the shorter of the vesting period or the individual's retirement eligibility date. As of October 29, 2023, there was $16.2 million of total unrecognized compensation expense from stock-based compensation arrangements granted under the plans. This compensation is expected to be recognized over a weighted-average period of approximately 1.6 years. During fiscal years 2023, 2022, and 2021, cash received from stock option exercises was $12.0 million, $79.8 million, and $45.9 million, respectively. Shares issued for option exercises, restricted stock units, restricted shares, and deferred stock units may be either authorized but unissued shares or shares of treasury stock. The number of shares available for future grants was 10.1 million at October 29, 2023, 11.1 million at October 30, 2022, and 12.5 million at October 31, 2021. Stock Options: The Company’s policy is to grant options with the exercise price equal to the market price of the common stock on the date of grant. Options typically vest over four years and expire ten years after the date of the grant. A reconciliation of the number of options outstanding and exercisable as of October 29, 2023, is:
|  | Shares (in thousands) |  | Weighted-average Exercise Price |  | Weighted-average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value (in thousands)
Stock Options Outstanding at October 30, 2022 |  | 16,130 |  |  | $ | 36.85 |  |  |  |  |
Granted |  | 1,002 |  |  | 46.46 |  |  |  |  |
Exercised |  | (518) |  |  | 29.24 |  |  |  |  |
Forfeited |  | (147) |  |  | 41.51 |  |  |  |  |
Expired |  | (84) |  |  | 42.55 |  |  |  |  |
Stock Options Outstanding at October 29, 2023 |  | 16,384 |  |  | $ | 37.61 |  |  | 4.3 |  | $ | 18,845 |
Stock Options Exercisable at October 29, 2023 |  | 13,611 |  |  | $ | 36.00 |  |  | 3.5 |  | $ | 18,845 |
The weighted-average grant date fair value of stock options granted and the total intrinsic value of options exercised are:
|  | Fiscal Year Ended
|  | October 29, |  | October 30, |  | October 31,
In thousands, except per share amounts |  | 2023 |  | 2022 |  | 2021
Weighted-average Grant Date Fair Value |  | $ | 10.06 |  |  | $ | 7.09 |  |  | $ | 7.52 |
Intrinsic Value of Exercised Options |  | 6,350 |  |  | 109,745 |  |  | 94,108 |
The fair value of each option award is calculated on the date of grant using the Black-Scholes valuation model utilizing the following weighted-average assumptions:
|  | Fiscal Year Ended
|  | October 29, |  | October 30, |  | October 31,
|  | 2023 |  | 2022 |  | 2021
Risk-free Interest Rate |  | 3.5 | % |  | 1.6 | % |  | 1.0 | %
Dividend Yield |  | 2.4 | % |  | 2.4 | % |  | 2.1 | %
Stock Price Volatility |  | 21.1 | % |  | 20.4 | % |  | 20.0 | %
Expected Option Life |  | 7.4 years |  | 7.5 years |  | 7.4 years
As part of the annual valuation process, the Company reassesses the appropriateness of the inputs used in the valuation models. The Company establishes the risk-free interest rate using U.S. Treasury yields as of the grant date. The dividend yield is based on the dividend rate approved by the Company’s Board of Directors and the stock price on the grant date. The expected volatility assumption is based on historical volatility. The expected life assumption is based on an analysis of past exercise behavior by option holders. In performing the valuations for option grants, the Company has not stratified option holders as exercise behavior has historically been consistent across all employees. Restricted Stock Units: Restricted stock units are valued equal to the market price of the common stock on the date of the grant and generally vest after three years. These awards accumulate dividend equivalents, which are provided as additional units and are subject to the same vesting requirements as the underlying grant. A reconciliation of the restricted stock units as of October 29, 2023, is:
|  | Shares (in thousands) |  | Weighted- average Grant Date Fair Value | Weighted-average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in thousands)
Restricted Stock Units Outstanding at October 30, 2022 |  | 681 |  |  | $ | 45.53 |  |  |
Granted |  | 237 |  |  | 45.96 |  |  |
Dividend Equivalents |  | 18 |  |  | 41.44 |  |  |
Vested |  | (185) |  |  | 45.88 |  |  |
Forfeited |  | (28) |  |  | 45.64 |  |  |
Restricted Stock Units Outstanding at October 29, 2023 |  | 723 |  |  | $ | 45.59 |  | 1.3 | $ | 22,692 |
The weighted-average grant date fair value of restricted stock units granted, the total fair value of restricted stock units granted, and the fair value of restricted stock units that have vested are:
|  | Fiscal Year Ended
|  | October 29, |  | October 30, |  | October 31,
In thousands, except per share amounts |  | 2023 |  | 2022 |  | 2021
Weighted-average Grant Date Fair Value |  | $ | 45.96 |  |  | $ | 44.14 |  |  | $ | 47.52 |
Fair Value of Restricted Stock Units Granted |  | 10,889 |  |  | 15,980 |  |  | 10,699 |
Fair Value of Restricted Stock Units Vested |  | 8,466 |  |  | 1,893 |  |  | 1,460 |
Restricted Shares: Restricted shares awarded to nonemployee directors annually on February 1 are subject to a restricted period which expires the date of the Company’s next annual stockholders meeting. Newly elected directors receive a prorated award of restricted shares of the Company's common stock, which expires on the date of the Company's second succeeding annual stockholders meeting. A reconciliation of the restricted shares as of October 29, 2023, is:
|  | Shares (in thousands) |  | Weighted- average Grant Date Fair Value
Restricted Shares Outstanding at October 30, 2022 |  | 37 |  |  | $ | 47.11 |
Granted |  | 44 |  |  | 44.14 |
Vested |  | (37) |  |  | 47.11 |
Restricted Shares Outstanding at October 29, 2023 |  | 44 |  |  | $ | 44.14 |
The weighted-average grant date fair value of restricted shares granted, the total fair value of restricted shares granted, and the fair value of shares that have vested are:
|  | Fiscal Year Ended
|  | October 29, |  | October 30, |  | October 31,
In thousands, except per share amounts |  | 2023 |  | 2022 |  | 2021
Weighted-average Grant Date Fair Value |  | $ | 44.14 |  |  | $ | 47.11 |  |  | $ | 46.92 |
Fair Value of Restricted Shares Granted |  | 1,920 |  |  | 1,760 |  |  | 1,760 |
Fair Value of Restricted Shares Vested |  | 1,760 |  |  | 1,760 |  |  | 2,133 |
Deferred Stock Units: Nonemployee directors can elect to receive all or a portion of their annual retainer in the form of non-forfeitable deferred stock units which vest immediately. The deferred stock units accumulate dividend equivalents, which are provided as additional units. Each deferred stock unit represents the right to receive one share of the Company’s common stock following the completion of the director’s service. During fiscal 2023, the Company granted 17.5 thousand units, credited dividend equivalents of 2.7 thousand units and distributed 6.9 thousand units, which had a weighted-average fair value on the grant date of $38.93, $42.70, and $17.26 per share, respectively. As of October 29, 2023, 118.2 thousand units were outstanding, which had a weighted-average fair value on the grant date of $37.84 per share and an aggregate intrinsic fair value of $3.7 million.

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