XML 40 R19.htm IDEA: XBRL DOCUMENT
v3.24.3

Stock Plans | 12 Months Ended
--- | ---
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock Plans | Note 9. Stock Plans All share, restricted stock unit (RSU), option, per share, per RSU and per option information presented below have been adjusted to reflect the four-for-one stock split effected on February 16, 2024. Refer to Note 1. Organization and Significant Accounting Policies. 2007 Long-Term Incentive Plan (2007 Plan) In March 2007, we received stockholder approval of the 2007 Plan. The 2007 Plan was subsequently amended and restated, and granted stockholder approval in March 2009, March 2011, and March 2016. The 2007 Plan authorizes either our Board of Directors, or a designated committee thereof composed of two or more non-employee directors, to grant to eligible individuals during the period ending December 31, 2026, up to 27,720,000 shares in the form of specified equity awards including stock options, restricted stock units and performance share awards. RSUs have no dividend or voting rights prior to vesting. Awards under the 2007 Plan remain outstanding but new awards are no longer being granted. 2023 Long-Term Incentive Plan (2023 Plan) In March 2023, we received stockholder approval of the 2023 Plan. The 2023 Plan authorizes either our Board of Directors, or a designated committee thereof composed of two or more non-employee directors, to grant to eligible individuals up to 5,460,000 shares in the form of specified equity awards including stock options, restricted stock units (RSUs) and performance share units (PSUs), subject to adjustment for future stock splits, stock dividends, expirations, forfeitures, and similar events. In addition, the 2023 Plan includes any shares which were available for issuance under the 2007 Plan at the time of stockholder approval of this plan and shares which become available as a result of the forfeiture or expiration of awards made under the 2007 Plan. As of October 31, 2024, 4,852,018 shares remained available under the 2023 Plan for future grants. The amount of available shares includes shares which may be distributed under performance shares. Share-Based Compensation The compensation expense and related income tax benefit recognized in our Consolidated Statements of Income for share-based awards, including the Employee Stock Purchase Plan, were as follows:
October 31, |  |  |
(In millions) | 2024 |  | 2023 |  | 2022
Selling, general and administrative expense | $ | 67.6 |  |  | $ | 54.8 |  |  | $ | 46.7 |
Cost of sales | 4.7 |  |  | 4.2 |  |  | 4.5 |
Research and development expense | 2.8 |  |  | 3.1 |  |  | 3.0 |
Total compensation expense | $ | 75.1 |  |  | $ | 62.1 |  |  | $ | 54.2 |
Related income tax benefit | $ | 12.1 |  |  | $ | 5.0 |  |  | $ | 5.0 |
Stock Options The fair value of each stock option award granted is estimated on the date of grant using the Black-Scholes option valuation model and assumptions noted in the following table.
Years Ended October 31, | 2024 |  | 2023 |  | 2022
Expected life | 4.9 years |  | 4.5 years |  | 4.1 years
Expected volatility | 29.1 | % |  | 29.5 | % |  | 25.8 | %
Risk-free interest rate | 4.2 | % |  | 3.8 | % |  | 1.1 | %
Dividend yield | — | % |  | 0.02 | % |  | 0.02 | %
The activity and status of our stock option plans are summarized below:
| Number of Shares |  | Weighted- Average Exercise Price Per Share |  | Weighted- Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding at October 31, 2023 | 4,310,224 |  |  | $ | 69.32 |  |  |  |  |
Granted | 14,220 |  |  | $ | 85.07 |  |  |  |  |
Exercised | (1,028,632) |  |  | $ | 50.53 |  |  |  |  |
Forfeited or expired | (3,344) |  |  | $ | 82.46 |  |  |  |  |
Outstanding at October 31, 2024 | 3,292,468 |  |  | $ | 75.25 |  |  | 5.26 |  | $ | 96,903,913 |
Vested and expected to vest at October 31, 2024 | 3,265,227 |  |  | $ | 75.14 |  |  | 5.24 |  | $ | 96,439,520 |
Vested and exercisable at October 31, 2024 | 2,507,860 |  |  | $ | 71.38 |  |  | 4.74 |  | $ | 83,521,576 |
The weighted-average fair value of options granted during fiscal 2024, 2023 and 2022, estimated as of the grant date using the Black-Scholes option pricing model, was $26.54, $25.79 and $22.60. The total intrinsic value of options exercised during the fiscal years ended October 31, 2024, 2023 and 2022 was $51.3 million, $13.4 million and $6.6 million, respectively. Stock options outstanding under our current plans have been granted at prices which are either equal to or above the market value of the common stock on the date of grant. Options granted under the 2007 Plan and 2023 Plan generally vest over a range of three to five years based on service conditions and expire no later than ten years after the grant date. We generally recognize compensation expense ratably over the vesting period. As of October 31, 2024, there was $8.2 million of total unrecognized compensation cost related to non-vested options, which is expected to be recognized over a remaining weighted-average vesting period of 1.7 years. Restricted Stock Units RSUs granted under the 2007 Plan and the 2023 Plan generally vest over three to five years. The grant-date fair value of RSUs is estimated based on the market price of our common stock. We recognize compensation expense ratably over the vesting period. As of October 31, 2024, there was $68.7 million of total unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a remaining weighted-average vesting period of 2.5 years. The total fair value of RSU grants that vested during the fiscal years ended October 31, 2024, 2023 and 2022 was $40.9 million, $37.3 million and $46.1 million, respectively. The status of our non-vested RSUs is summarized below:
| Number of Shares |  | Weighted- Average Grant Date Fair Value Per Share
Non-vested RSUs at October 31, 2023 | 1,160,116 |  |  | $ | 86.26 |
Granted | 678,431 |  |  | $ | 85.97 |
Vested and issued | (436,768) |  |  | $ | 83.80 |
Forfeited or expired | (103,056) |  |  | $ | 86.38 |
Non-vested RSUs at October 31, 2024 | 1,298,723 |  |  | $ | 86.92 |
Performance Units Performance units may be granted to selected key employees with vesting contingent upon meeting certain performance goals over a defined performance cycle, usually three years. Performance units, if earned, may be paid in cash or shares of common stock. We granted performance unit awards on December 13, 2022, December 7, 2021, and December 8, 2020, under the 2007 Plan, with three-year performance periods ending in fiscal 2026, fiscal 2025, and fiscal 2024 respectively. The performance shares actually earned will range from zero to 200% of the target number of performance shares. Subject to limited exceptions set forth in the performance share agreement, any shares earned will be distributed in the subsequent fiscal year after the performance period. The fair value of performance unit awards is estimated on the date of grant based on the current market price of our common stock. The amount of compensation expense related to these performance unit awards is reviewed each fiscal quarter and adjustments are recorded after assessing the probability of achieving the performance goals. We recognize compensation expense ratably over the vesting period. As of October 31, 2024, there was $16.9 million of total unrecognized compensation cost related to non-vested performance units, which is expected to be recognized over a remaining weighted-average vesting period of 1.7 years. Employee Stock Purchase Plan On March 18, 2019, the Company received stockholder approval for the Employee Stock Purchase Plan (ESPP). The first offering period began on November 4, 2019, and offerings are generally made on a quarterly basis. The purpose of the ESPP is to provide eligible employees of the Company with the opportunity to acquire shares of common stock at 85% of the market price on the last business day of each offering period by means of accumulated payroll deductions. The ESPP initially authorized the issuance of 4,000,000 shares of common stock. These shares will be made available from shares of common stock reacquired by the Company as Treasury Stock. During fiscal 2024 and 2023, we issued 107,031 and 104,464 shares to our employees under the ESPP, respectively. At October 31, 2024, the number of shares remaining available for future issuance under the ESPP was 3,580,869 shares. Total ESPP share-based compensation recognized during fiscal 2024 and 2023 was $1.6 million and $1.3 million, respectively.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration