SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Oct. 29, 2023

SHARE-BASED COMPENSATION

Vesting Period and Dividend Equivalents Received Prior to Vesting

The stock awards vesting periods and the dividend equivalents earned during the vesting period follow:

	Vesting	Dividend
	Period	Equivalents
Stock options	1-3 years	Not included
Service-based RSUs	1-3 years	Included
Performance/service-based RSUs	3 years	Not included

Share-based Compensation Expense, Recognized Tax Benefits, and Total Grant-date Fair Value

The total share-based compensation expense, recognized income tax benefits, and total grant-date fair values of stock options and restricted stock units vested consisted of the following:

	2023		2022		2021
Share-based compensation expense	$	130	$	85	$	82
Income tax benefits		21		17		16
Stock options and restricted stock units vested		84		74		93

Assumptions Used for the Binomial Lattice Model to Determine Fair Value of Options

The assumptions used for the binomial lattice model to determine the fair value of options follow:

	2023	2022	2021
Risk-free interest rate*	2.68%	1.27%	.47%
Expected dividends	1.1%	1.2%	1.2%
Volatility*	33.0%	32.0%	31.0%
Expected term (in years)*	5.1	5.1	5.5

*    Weighted-averages

Stock Option Activity

The activity for outstanding stock options at October 29, 2023, and changes during 2023 follow:

				Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Shares	Price*		Term	Value
	(millions)	(per share)		(years)	(millions)
Outstanding at beginning of year	2.0	$	153.11
Granted	.2		438.44
Exercised	(.5)		118.54
Outstanding at end of year	1.7		190.08	4.62	$	302.3
Exercisable at end of year	1.3		144.71	3.66		292.3

*    Weighted-averages

Amounts Related to Stock Options

The amounts related to stock options were as follows in millions of dollars unless otherwise noted:

	2023		2022		2021
Weighted-average grant date fair value (per share)	$	136.46	$	89.20	$	62.73
Intrinsic value of options exercised		153		169		318
Cash received from exercises		60		63		148
Tax benefit from exercises		34		39		71

Weighted-average Grant Date Fair Values

The weighted-average grant date fair values were as follows:

	2023		2022		2021
Service-based	$	428.35	$	347.59	$	258.86
Performance/service-based		424.93		331.47		245.73

Restricted Stock Units Activity

Our restricted stock units at October 29, 2023 and changes during 2023 in dollars and thousands of shares follow:

		Grant-Date
	Shares	Fair Value*
Service-based
Nonvested at beginning of year	404	$	251.42
Granted	126		428.35
Vested	(211)		211.03
Forfeited	(9)		333.29
Nonvested at end of year	310		348.82
Performance/service based
Nonvested at beginning of year	143		227.70
Granted	41		424.93
Vested	(130)		160.81
Performance change	65		160.81
Nonvested at end of year	119		331.78

* Weighted-averages