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Stock-Based Compensation (Tables)

12 Months Ended

Oct. 31, 2012

Share-based compensation arrangements by share-based payment award

Non-vested restricted stock awards as of October 31, 2012 and 2011 and changes during fiscal 2012 and 2011 were as follows:

	2012					2011

	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		16,813		$	39		5,848		$	45
Granted		20,316		$	27		17,569		$	38
Vested		(8,521	)	$	38		(5,660	)	$	41
Forfeited		(3,076	)	$	34		(944	)	$	43

Outstanding at end of year		25,532		$	31		16,813		$	39

Details of restricted stock awards granted and assumed through acquisitions

	2012				2011

	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
Restricted stock units		20,316	$	27		17,234	$	38

		20,316	$	27		17,569	$	38

Details of non-vested restricted stock awards

	2012

	Shares in thousands
Non-vested at October 31:
Restricted stock		349	984
Restricted stock units		25,183	15,829

		25,532	16,813

Stock Options Activity

Option activity as of October 31 during each fiscal year was as follows:

	2012									2011

	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		120,243		$	28						142,916		$	28
Granted and assumed through acquisitions		7,529		$	27						18,804		$	21
Exercised		(29,683	)	$	20						(37,121	)	$	23
Forfeited/cancelled/expired		(10,793	)	$	35						(4,356	)	$	39

Outstanding at end of year		87,296		$	29		3.0	$	15		120,243		$	28		3.0	$	460

Vested and expected to vest at end of year		85,935		$	29		2.9	$	15		117,066		$	28		2.9	$	442

Exercisable at end of year		68,437		$	31		1.9	$	12		97,967		$	29		2.0	$	332

Information about options outstanding

Information about options outstanding at October 31, 2012 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		1,097		5.3	$	6		994	$	6
$10-$19.99		8,441		5.3	$	14		4,622	$	14
$20-$29.99		36,396		3.6	$	24		22,369	$	23
$30-$39.99		21,962		1.4	$	32		21,645	$	32
$40-$49.99		18,313		2.3	$	43		17,945	$	43
$50-$59.99		810		4.2	$	52		585	$	52
$60 and over		277		1.5	$	75		277	$	75

		87,296		3.0	$	29		68,437	$	31

Performance Based Restricted Units (PRUs) Activity

Non-vested PRUs as of October 31, 2012 and 2011 and changes during fiscal 2012 and 2011 were as follows:

	2012

	Shares in thousands
Outstanding Target Shares at beginning of year		11,382		18,508
Granted		1,251		5,950
Vested		—		—
Change in units due to performance and market conditions achievement for PRUs vested in the year⁽¹⁾		(5,617	)	(10,862	)
Forfeited		(1,328	)	(2,214	)

Outstanding Target Shares at end of year		5,688		11,382

Outstanding Target Shares of PRUs assigned a fair value at end of year		3,492	⁽²⁾	5,867	⁽³⁾

⁽¹⁾: The minimum level of TSR was not met for PRUs granted in fiscal 2010 and 2009, which resulted in the cancellation of approximately 5.6 million and 10.9 million Target Shares on October 31, 2012 and October 31, 2011, respectively.
⁽²⁾: Excludes Target Shares for the third year for PRUs granted in fiscal 2011 and for the second and third years for PRUs granted in fiscal 2012, 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 performance goals are approved.
⁽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.

Employee Stock Purchase Plan details

The ESPP activity as of October 31 during each fiscal year was as follows:

	2012		2011		2010

	In millions, except weighted-average purchase price per share
Compensation expense, net of taxes	$	—	$	—	$	—
Shares purchased		6.21		1.75		1.62
Weighted-average purchase price per share	$	17	$	25	$	47

Employee Stock Purchase Plan Employees participated and eligible to participate

	2012

	In thousands
Employees eligible to participate		301	261	251
Employees who participated		21	18	18

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

	2012

	Shares in thousands
Shares available for future grant at October 31		152,837	172,259	124,553	⁽¹⁾

Shares reserved for future issuance under all stock-related benefit plans at October 31		270,498	319,602	296,973

⁽¹⁾: Includes 30 million shares that expired in November 2010.

Stock Options

Share-based compensation arrangements by share-based payment award

Schedule of weighted average assumptions, in addition to projections of market conditions

	2012			2011			2010

Weighted-average fair value of grants per share⁽¹⁾	$	9.06		$	7.85		$	13.33
Implied volatility		42	%		41	%		30	%
Risk-free interest rate		1.17	%		1.20	%		2.06	%
Dividend yield		1.83	%		1.97	%		0.68	%
Expected life in months		67			63			61

⁽¹⁾: The fair value calculation was based on stock options granted during the period.

Performance-Based Restricted Units (PRUs)

Share-based compensation arrangements by share-based payment award

Schedule of weighted average assumptions, in addition to projections of market conditions

The following weighted-average assumptions, in addition to projections of market conditions, were used to determine the weighted-average fair values of these PRU awards for fiscal years ended October 31:

	2012			2011			2010

Weighted-average fair value of grants per share	$	3.35	⁽¹⁾	$	27.59	⁽²⁾	$	57.13	⁽³⁾
Expected volatility⁽⁴⁾		41	%		30	%		38	%
Risk-free interest rate		0.14	%		0.38	%		0.73	%
Dividend yield		1.78	%		0.75	%		0.64	%
Expected life in months		15			19			22

⁽¹⁾: Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the second year of the three-year performance period applicable to PRUs granted in fiscal 2011. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal 2011 will be determined on the measurement date applicable to those PRUs, which will occur during the period that the annual performance 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 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.
⁽³⁾: 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.
⁽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.