Stock-Based Compensation (Tables)

12 Months Ended

Oct. 31, 2011

Stock-Based Compensation

Performance-based Restricted Units (PRUs) Assumptions

	2011			2010			2009
Weighted-average fair value of grants per share	$	27.59	(1)	$	57.13	(2)	$	40.56	(3)
Expected volatility(4)		30	%		38	%		35	%
Risk-free interest rate		0.38	%		0.73	%		1.34	%
Dividend yield		0.75	%		0.64	%		0.88	%
Expected life in months		19			22			30

⁽¹⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2009, for the second year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2011. The estimated fair value of a target share for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in fiscal 2011 will be determined on the measurement date applicable to those PRUs, which will be the date that the annual cash flow goals are approved for those PRUs, and the expense will be amortized over the remainder of the applicable three-year performance period.

⁽²⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2008, for the second year of the three-year performance period applicable to PRUs granted in fiscal 2009 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2010.

⁽³⁾

Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2008 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2009.

⁽⁴⁾

HP uses historic volatility for PRU awards, as implied volatility cannot be used when simulating multivariate prices for companies in the S&P 500.

Performance-based Restricted Units (PRUs) Activity

	2011			2010
	Shares in thousands
Outstanding Target Shares at beginning of year		18,508			21,093
Granted		5,950			7,388
Vested		—			(7,186)	(1)
Change in units due to performance and market conditions achievement for PRUs vested in the year(2)		(10,862	)		(108	)
Forfeited		(2,214	)		(2,679	)
Outstanding Target Shares at end of year		11,382			18,508
Outstanding Target Shares of PRUs assigned a fair value at end of year		5,867	(3)		10,201	(4)

⁽¹⁾

Vested shares relate to awards vested under the 2008 PRU plan.

⁽²⁾

The minimum level of TSR was not met for PRUs granted in fiscal 2009, which resulted in the cancellation of approximately 10.9 million Target Shares on October 31, 2011.

⁽³⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in fiscal 2011, as the measurement date has not yet been established. The measurement date and related fair value for the excluded PRUs will be established when the annual cash flow goals are approved.

⁽⁴⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2009 and for the second and third years for PRUs granted in fiscal 2010, as the measurement date has not yet been established.

Stock Options Assumptions

	2011			2010			2009
Weighted-average fair value of grants per share(1)	$	7.85		$	13.33		$	13.04
Implied volatility		41	%		30	%		43	%
Risk-free interest rate		1.20	%		2.06	%		2.07	%
Dividend yield		1.97	%		0.68	%		0.92	%
Expected life in months		63			61			61

⁽¹⁾

The fair value calculation was based on stock options granted during the period.

Stock Options Activity

	2011									2010
	Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value		Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
	In thousands					In years		In millions		In thousands					In years		In millions
Outstanding at beginning of year		142,916		$	28						233,214		$	33
Granted and assumed through acquisitions		18,804		$	21						11,939		$	22
Exercised		(37,121	)	$	23						(75,002	)	$	34
Forfeited/cancelled/expired		(4,356	)	$	39						(27,235	)	$	55
Outstanding at end of year		120,243		$	28		3.0	$	460		142,916		$	28		2.7	$	2,140
Vested and expected to vest at end of year		117,066		$	28		2.9	$	442		141,082		$	28		2.7	$	2,114
Exercisable at end of year		97,967		$	29		2.0	$	332		125,232		$	28		2.1	$	1,895

Information about options outstanding

Information about options outstanding at October 31, 2011 was as follows:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Shares Outstanding		Weighted- Average Remaining Contractual Life		Weighted- Average Exercise Price Per Share		Shares Exercisable		Weighted- Average Exercise Price Per Share
	In thousands		In years				In thousands
$0-$9.99		2,456		6.8	$	6		2,028	$	6
$10-$19.99		14,307		4.6	$	15		7,652	$	15
$20-$29.99		56,375		2.5	$	22		43,818	$	22
$30-$39.99		23,838		2.5	$	32		22,965	$	32
$40-$49.99		20,336		3.4	$	43		19,078	$	43
$50-$59.99		1,171		5.3	$	52		666	$	51
$60 and over		1,760		0.7	$	75		1,760	$	75
		120,243		3.0	$	28		97,967	$	29

Restricted Stock Awards Activity

	2011					2010
	Shares			Weighted- Average Grant Date Fair Value Per Share		Shares			Weighted- Average Grant Date Fair Value Per Share
	In thousands					In thousands
Outstanding at beginning of year		5,848		$	45		6,864		$	44
Granted and assumed through acquisitions		17,569		$	38		4,821		$	48
Vested		(5,660	)	$	41		(5,202	)	$	46
Forfeited		(944	)	$	43		(635	)	$	46
Outstanding at end of year		16,813		$	39		5,848		$	45

Details of restricted stock awards granted and assumed through acquisitions

	2011				2010
	Shares		Weighted- Average Grant Date Fair Value Per Share		Shares		Weighted- Average Grant Date Fair Value Per Share
	In thousands				In thousands
Restricted stock		335	$	42		1,543	$	48
Restricted stock units		17,234	$	38		3,278	$	48
		17,569	$	38		4,821	$	48

Details of non-vested restricted stock awards

		2011		2010
		Shares in thousands
Non-vested at October 31:
	Restricted stock		984		1,936
	Restricted stock units		15,829		3,912
			16,813		5,848

Employee Stock Purchase Plan details

	2011		2010		2009
	In millions, except weighted-average purchase price per share
Compensation expense, net of taxes	$	—	$	—	$	24
Shares purchased		1.75		1.62		6.16
Weighted-average purchase price per share	$	25	$	47	$	33

Employee Stock Purchase Plan Employees participated and eligible to participate

	2011		2010		2009
	In thousands
Employees eligible to participate		261		251		260
Employees who participated		18		18		49

Shares available for future grant and shares reserved for future issuance under the ESPP and incentive compensation plans

		2011		2010			2009
		Shares in thousands
Shares available for future grant at October 31:
	HP plans		172,259		124,553	(1)		95,311	(1)
	Assumed Compaq and EDS plans		—		—			82,449	(2)
			172,259		124,553			177,760
Shares reserved for future issuance under all stock-related benefit plans at October 31			319,602		296,973			410,977

⁽¹⁾

Includes 30 million and 24 million shares that expired in November 2010 and November 2009, respectively.

⁽²⁾

In November 2009, HP retired the assumed Compaq and EDS plans for purposes of granting new awards. The shares that had been reserved for future awards under those plans were returned to HP's pool of authorized shares and will not be available for issuance under any other HP plans.