Stockholders' Equity

6 Months Ended

Apr. 30, 2011

Note 13: Stockholders' Equity

Share Repurchase Program

HP's share repurchase program authorizes both open market and private repurchase transactions. In the three and six months ended April 30, 2011, HP executed share repurchases of 65 million shares and 116 million shares, respectively. For the three months ended April 30, 2011, repurchases of 63 million shares were settled for $2.7 billion. For the six months ended April 30, 2011, repurchases of 117 million shares were settled for $5.0 billion, which included 4 million shares repurchased in transactions that were executed in fiscal 2010 but settled in the first half of fiscal 2011. HP had approximately 2 million shares repurchased in the second quarter of fiscal 2011 that will be settled in the third quarter of fiscal 2011. HP paid approximately $1.8 billion in connection with repurchases of approximately 35 million shares during the three months ended April 30, 2010 and paid approximately $4.5 billion in connection with repurchases of approximately 89 million shares in the first six months of fiscal 2010. As of April 30, 2011, HP had remaining authorization of $5.9 billion for future share repurchases.

Comprehensive Income

The changes in the components of other comprehensive income ("OCI"), net of taxes, were as follows:

		Three months ended April 30

		2011			2010
		In millions
Net earnings		$	2,304		$	2,200
Net change in unrealized gains on available-for-sale securities, net of tax benefit of $7 million in 2011, and net of tax of $4 million in 2010			—			7
Net change in unrealized gains/losses on cash flow hedges:
	Unrealized (losses) gains recognized in OCI, net of tax benefit of $273 million in 2011 and net of tax of $81 million in 2010		(498	)		157
	Losses (gains) reclassified into income, net of tax benefit of $110 million in 2011 and net of tax of $73 million in 2010		226			(130	)

			(272	)		27

Net change in cumulative translation adjustment, net of tax of $1 million in 2011 and $12 million in 2010			81			71
Net change in unrealized components of defined benefit plans, net of tax benefit of $108 million in 2011 and net of tax of $60 million in 2010			297			83

Comprehensive income		$	2,410		$	2,388

		Six months ended April 30

		2011			2010
		In millions
Net earnings		$	4,909		$	4,450
Net change in unrealized gains on available-for-sale securities, net of tax benefit of $2 million in 2011 and net of tax of $5 million in 2010			10			9
Net change in unrealized gains/losses on cash flow hedges:
	Unrealized (losses) gains recognized in OCI, net of tax benefit of $241 million in 2011 and net of tax of $238 million in 2010		(438	)		447
	Losses (gains) reclassified into income, net of tax benefit of $109 million in 2011 and net of tax of $31 million in 2010		213			(70	)

			(225	)		377

Net change in cumulative translation adjustment, net of tax of $18 million in 2011 and net of tax benefit of $2 million in 2010			132			11
Net change in unrealized components of defined benefit plans, net of tax benefit of $98 million in 2011 and net of tax of $69 million in 2010			328			94

Comprehensive income		$	5,154		$	4,941

The components of accumulated other comprehensive loss, net of taxes, were as follows:

	April 30, 2011			October 31, 2010

	In millions
Net unrealized gain on available-for-sale securities	$	30		$	20
Net unrealized loss on cash flow hedges		(426	)		(201	)
Cumulative translation adjustment		(299	)		(431	)
Unrealized components of defined benefit plans		(2,897	)		(3,225	)

Accumulated other comprehensive loss	$	(3,592	)	$	(3,837	)

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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