SHARE-BASED COMPENSATION (Tables)
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12 Months Ended |
Oct. 31, 2017 |
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| Share-based Compensation [Abstract] |
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| Allocated Share-based compensation expense disclosure |
The impact on our results for share-based compensation was as follows:
| | | | | | | | | | | | | | Years Ended October 31, | | 2017 | | 2016 | | 2015 | | (in millions) | Cost of products and services | $ | 15 |
| | $ | 14 |
| | $ | 11 |
| Research and development | 6 |
| | 6 |
| | 5 |
| Selling, general and administrative | 40 |
| | 40 |
| | 39 |
| Total share-based compensation expense | $ | 61 |
| | $ | 60 |
| | $ | 55 |
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| Share-based compensation arrangement by share-based payment award fair value assumptions and methodology schedule |
The following assumptions were used to estimate the fair value of employee stock options and LTPP grants.
| | | | | | | | Years Ended October 31, | | 2017 | | 2016 | | 2015 | Stock Option Plans: | | | | | | Weighted average risk-free interest rate | — | | — | | 1.75% | Dividend yield | — | | — | | 1% | Weighted average volatility | — | | — | | 28% | Expected life | — | | — | | 5.5 years | LTPP: | | | | | | Volatility of Agilent shares | 23% | | 24% | | 25% | Volatility of selected peer-company shares | 15%-63% | | 14%-50% | | 12%-57% | Price-wise correlation with selected peers | 36% | | 35% | | 37% | | | | | | | Post-vest restriction discount for all executive awards | 5.3% | | 5.5% | | — |
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| Summary of stock option award activity |
The following table summarizes employee stock option award activity of our employees and directors for 2017.
| | | | | | | | | Options Outstanding | | Weighted Average Exercise Price | | (in thousands) | | | Outstanding at October 31, 2016 | 4,106 |
| | $ | 33 |
| Granted | — |
| | $ | — |
| Exercised | (1,343 | ) | | $ | 30 |
| Cancelled/Forfeited/Expired | (2 | ) | | $ | 41 |
| Outstanding at October 31, 2017 | 2,761 |
| | $ | 34 |
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Forfeited and expired options from total cancellations in 2017 were as follows:
| | | | | | | | | Options Cancelled | | Weighted Average Exercise Price | | (in thousands) | | | Forfeited | 2 |
| | $ | 41 |
| Expired | — |
| | $ | — |
| Total options cancelled during 2017 | 2 |
| | $ | 41 |
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| Schedule of share-based compensation, shares authorized under stock option plans, by exercise price range |
The options outstanding and exercisable for equity share-based payment awards at October 31, 2017 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Options Outstanding | | Options Exercisable | Range of Exercise Prices | Number Outstanding | | Weighted Average Remaining Contractual Life | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | Number Exercisable | | Weighted Average Remaining Contractual Life | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | (in thousands) | | (in years) | | | | (in thousands) | | (in thousands) | | (in years) | | | | (in thousands) | $0 - 25 | 170 |
| | 1.6 | | $ | 18 |
| | $ | 8,561 |
| | 170 |
| | 1.6 | | $ | 18 |
| | $ | 8,561 |
| $25.01 - 30 | 957 |
| | 4.3 | | $ | 26 |
| | 39,804 |
| | 957 |
| | 4.3 | | $ | 26 |
| | 39,804 |
| $30.01 - 40 | 528 |
| | 6.1 | | $ | 39 |
| | 15,258 |
| | 296 |
| | 6.1 | | $ | 39 |
| | 8,566 |
| $40.01 - over | 1,106 |
| | 7.0 | | $ | 41 |
| | 30,035 |
| | 493 |
| | 7.0 | | $ | 41 |
| | 13,396 |
| | 2,761 |
| | 5.6 | | $ | 34 |
| | $ | 93,658 |
| | 1,916 |
| | 5.0 | | $ | 31 |
| | $ | 70,327 |
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| Schedule of intrinsic value of options exercised and the fair value of options granted |
The following table summarizes the aggregate intrinsic value of options exercised in 2017, 2016 and 2015 and the fair value of options granted in 2015:
| | | | | | | | | | | | | | Aggregate Intrinsic Value | | Weighted Average Exercise Price | | Per Share Value Using Black-Scholes Model | | (in thousands) | | | | | Options exercised in fiscal 2015 | $ | 33,258 |
| | $ | 24 |
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| Black-Scholes per share value of options granted during fiscal 2015 | |
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| | $ | 11 |
| Options exercised in fiscal 2016 | $ | 26,913 |
| | $ | 25 |
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| Options exercised in fiscal 2017 | $ | 36,175 |
| | $ | 30 |
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| Non-vested award activity disclosure |
The following table summarizes non-vested award activity in 2017 primarily for our LTPP and restricted stock unit awards. | | | | | | | | | Shares | | Weighted Average Grant Price | | (in thousands) | | | Non-vested at October 31, 2016 | 3,062 |
| | $ | 40 |
| Granted | 1,405 |
| | $ | 47 |
| Vested | (1,068 | ) | | $ | 39 |
| Forfeited | (84 | ) | | $ | 42 |
| Change in LTPP shares in the year due to not meeting performance conditions | (13 | ) | | $ | — |
| Non-vested at October 31, 2017 | 3,302 |
| | $ | 43 |
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