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Stock-Based Compensation (Tables)
 12 Months Ended
Oct. 31, 2018
Share-based compensation  
Schedule of stock based compensation expense and the resulting tax benefits
Stock-based compensation expense and the resulting tax benefits were as follows:
 
Fiscal years ended October 31,
 
2018
 
2017
 
2016
 
In millions
Stock-based compensation expense from continuing operations
$
309

 
$
454

 
$
408

Income tax benefit
(56
)
 
(159
)
 
(131
)
Stock-based compensation expense from continuing operations, net of tax
$
253

 
$
295

 
$
277

Stock-based compensation expense from discontinued operations
$
—

 
$
166

 
$
189
Schedule of restricted stock award activity
The following table summarizes restricted stock unit activity:
 
Fiscal years ended October 31,
 
2018
 
2017
 
2016
 
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
48,517

 
$
14

 
57,321

 
$
15

 
—

 
$
—

Converted from former Parent's Plans
—

 
$
—

 
—

 
$
—

 
42,012

 
$
15

Granted and assumed through acquisition(1)
22,131

 
$
15

 
23,980

 
$
21

 
32,752

 
$
15

Additional shares granted due to post-spin adjustments(2)
—

 
$
—

 
25,543

 
$
9

 
—

 
$
—

Vested(3)
(32,659
)
 
$
14

 
(51,976
)
 
$
16

 
(12,747
)
 
$
15

Forfeited/canceled(4)
(5,572
)
 
$
14

 
(6,351
)
 
$
16

 
(4,696
)
 
$
15

Outstanding at end of year
32,417

 
$
14

 
48,517

 
$
14

 
57,321

 
$
15

 
(1)
Fiscal 2017 includes approximately 11 million restricted stock units assumed by the Company through acquisition with a weighted-average grant date fair value of $18 per share. Fiscal 2016 includes a one-time restricted stock unit retention grant of approximately 5 million shares.
(2)
Additional shares granted as a result of the post-spin exercise price adjustments made related to the Everett and Seattle Transactions, as permitted by the Plan, in order to preserve the intrinsic value of outstanding awards prior to the close of the transactions.
(3)
Fiscal 2018 includes approximately 6 million restricted stock units, with a weighted-average grant date fair value of $14 per share, which were accelerated to vest on June 1, 2018 as part of the Everett Transaction. Fiscal 2017 includes approximately 14 million restricted stock units, with a weighted-average grant date fair value of $17 per share, which were accelerated as part of the Everett and Seattle Transactions.
(4)
Fiscal 2017 includes approximately 0.3 million restricted stock units, with a weighted-average grant date fair value of $18 per share, related to the former ES and Software segments, which were canceled by HPE and assumed by DXC and Micro Focus in connection with the Everett and Seattle Transactions, and in accordance with the respective Employee Matters Agreements.
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,
 
2017
 
2016
Weighted-average fair value(1)
$
6

 
$
4

Expected volatility(2)
25.7
%
 
31.1
%
Risk-free interest rate(3)
2.0
%
 
1.7
%
Expected dividend yield(4)
1.0
%
 
1.5
%
Expected term in years(5)
6.1

 
5.4

 
(1)
The weighted-average fair value was based on the fair value of stock options granted under the Plan during the respective periods.
(2)
Expected volatility was estimated using the average historical volatility of selected peer companies.
(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 subject to service-based vesting, the expected term was estimated using the simplified method detailed in SEC Staff Accounting Bulletin No. 110.
Schedule of stock options activity
The following table summarizes stock option activity:
 
Fiscal years ended October 31,
 
2018
 
2017
 
2016
 
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
49,274

 
$
10

 
 
 
 
 
57,498

 
$
15

 
 
 
 

 
—

 
$
—

 
 
 
 

Converted from former Parent's Plans
—

 
$
—

 
 
 
 
 
—

 
$
—

 
 
 
 
 
42,579

 
$
15

 
 
 
 
Granted and assumed through acquisition(1)
316

 
$
10

 
 
 
 
 
6,074

 
$
23

 
 
 
 

 
25,390

 
$
15

 
 
 
 

Additional shares granted due to post-spin adjustments(2)
—

 
$
—

 
 
 
 
 
24,523

 
$
11

 
 
 
 
 
—

 
$
—

 
 
 
 
Exercised
(26,476
)
 
$
9

 
 
 
 
 
(29,492
)
 
$
12

 
 
 
 

 
(7,845
)
 
$
11

 
 
 
 

Forfeited/canceled/expired(3)
(4,851
)
 
$
13

 
 
 
 
 
(9,329
)
 
$
16

 
 
 
 

 
(2,626
)
 
$
20

 
 
 
 

Outstanding at end of year(4)
18,263

 
$
10

 
4.2
 
$
92

 
49,274

 
$
10

 
4.6
 
$
207

 
57,498

 
$
15

 
5.4
 
$
437

Vested and expected to vest at end of year(4)
18,038

 
$
10

 
4.2
 
$
91

 
48,566

 
$
10

 
4.6
 
$
205

 
55,716

 
$
15

 
5.3
 
$
425

Exercisable at end of year(4)
14,896

 
$
10

 
3.7
 
$
85

 
24,736

 
$
9

 
3.0
 
$
123

 
26,204

 
$
13

 
3.8
 
$
241

 
(1)
Fiscal 2016 includes one-time stock option retention grant of approximately 16 million shares.
(2)
Additional shares granted as a result of the post-spin exercise price adjustments made related to the Everett and Seattle Transactions, as permitted by the Plan, in order to preserve the intrinsic value of the awards prior to the close of the transaction.
(3)
Fiscal 2017 includes approximately 8 million stock options, with a weighted-average exercise price of $16 per share, related to the former ES and Software segments, which were canceled by HPE in connection with the Everett and Seattle Transactions, and in accordance with the respective Employee Matters Agreements.
(4)
The weighted average exercise price reflects the impact of the post-spin adjustments to the exercise price related to the Everett and Seattle Transactions.
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, 2018
 
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
10,862

 
3.8
 
$
8

 
10,368

 
$
8

$10-$19.99
7,358

 
4.8
 
$
14

 
4,485

 
$
13

$20-$29.99
43

 
2.8
 
$
25

 
43

 
$
25

 
18,263

 
4.2
 
$
10

 
14,896

 
$
10