Stockholders' Equity

12 Months Ended

Oct. 31, 2011

Stockholders' Equity

Stockholders' Equity

Note 15: Stockholders' Equity

• Dividends

        The stockholders of HP common stock are entitled to receive dividends when and as declared by HP's Board of Directors. Dividends are paid quarterly. Dividends declared were $0.40 per common share in fiscal 2011 and $0.32 per common share in each of fiscal 2010 and 2009.

• Share Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. In fiscal 2011, HP executed share repurchases of 259 million shares. Repurchases of 262 million shares were settled for $10.1 billion, which included 4 million shares repurchased in transactions that were executed in fiscal 2010 but settled in fiscal 2011. HP had no shares repurchased in the fourth quarter of fiscal 2011 that will be settled in the next fiscal year. In fiscal 2010, HP executed share repurchases of 241 million shares. Repurchases of 240 million shares were settled for $11.0 billion, which included 3 million shares repurchased in transactions that were executed in fiscal 2009 but settled in fiscal 2010. In fiscal 2009, HP completed share repurchases of approximately 120 million shares. Repurchases of approximately 132 million shares were settled for $5.1 billion, which included approximately 14 million shares repurchased in transactions that were executed in fiscal 2008 but settled in fiscal 2009. The foregoing shares repurchased and settled in fiscal 2011, fiscal 2010 and fiscal 2009 were all open market repurchase transactions.

        In fiscal 2011, HP's Board of Directors authorized an additional $10 billion for future share repurchases. In fiscal 2010, HP's Board of Directors authorized an additional $18.0 billion for future share repurchases. In fiscal 2009, there was no additional authorization for future share repurchases by HP's Board of Directors. As of October 31, 2011, HP had remaining authorization of approximately $10.8 billion for future share repurchases.

Comprehensive Income

        The changes in the components of other comprehensive income, net of taxes, were as follows for the following fiscal years ended October 31:

		2011			2010			2009
		In millions
Net earnings		$	7,074		$	8,761		$	7,660
Net change in unrealized gains on available-for-sale securities:
	Change in net unrealized gains with no tax effect in fiscal 2011, net of tax of $9 million in fiscal 2010 and net of tax of $11 million in fiscal 2009		17			16			17
	Net unrealized gains reclassified into earnings, with no tax effect		—			—			(1	)
			17			16			16
Net change in unrealized gains (losses) on cash flow hedges:
	Unrealized (losses) gains recognized in OCI, net of tax benefit of $86 million in fiscal 2011, net of tax of $119 million in fiscal 2010 and net of tax benefit of $362 million in fiscal 2009		(288	)		250			(540	)
	Losses (gains) reclassified into income, net of tax benefit of $210 million in fiscal 2011, net of tax of $149 million in fiscal 2010 and net of tax of $187 million in fiscal 2009		448			(282	)		(431	)
			160			(32	)		(971	)
Net change in cumulative translation adjustment, net of tax of $20 million in fiscal 2011, net of tax of $31 million in fiscal 2010 and net of tax of $227 million in fiscal 2009			46			28			304
Net change in unrealized components of defined benefit plans, net of tax benefit of $229 million in fiscal 2011, $83 million in fiscal 2010 and $905 million in fiscal 2009			116			(602	)		(2,531	)
Comprehensive income		$	7,413		$	8,171		$	4,478

        The components of accumulated other comprehensive loss, net of taxes, were as follows for the following fiscal years ended October 31:

	2011			2010			2009
	In millions
Net unrealized gain on available-for-sale securities	$	37		$	20		$	4
Net unrealized loss on cash flow hedges		(41	)		(201	)		(169	)
Cumulative translation adjustment		(385	)		(431	)		(459	)
Unrealized components of defined benefit plans		(3,109	)		(3,225	)		(2,623	)
Accumulated other comprehensive loss	$	(3,498	)	$	(3,837	)	$	(3,247	)