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Stock-Based Compensation (Tables)

3 Months Ended

Jan. 31, 2013

Non-vested restricted stock awards as of January 31, 2013 and changes during the three months ended January 31, 2013 were as follows:

	Shares			Weighted- Average Grant Date Fair Value Per Share

	In thousands
Outstanding at October 31, 2012		25,532		$	31
Granted		17,701		$	14
Vested		(7,428	)	$	32
Forfeited		(1,030	)	$	28

Outstanding at January 31, 2013		34,775		$	22

Option activity as of January 31, 2013 and changes during the three months ended January 31, 2013 were as follows:

	Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value

	In thousands					In years		In millions
Outstanding at October 31, 2012		87,296		$	29
Granted		23,096		$	14
Exercised		(506	)	$	11
Forfeited/cancelled/expired		(3,531	)	$	27

Outstanding at January 31, 2013		106,355		$	26		3.8	$	85

Vested and expected to vest at January 31, 2013		103,137		$	26		3.7	$	79

Exercisable at January 31, 2013		67,570		$	31		1.8	$	21

	Three months ended January 31

	2013			2012
Weighted-average fair value of grants per share	$	13.14	⁽¹⁾	$	27.00	⁽²⁾

⁽¹⁾: Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2012. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal year 2012 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 first year of the three-year performance period applicable to PRUs granted in fiscal 2012.

Non-vested PRUs as of January 31, 2013 and changes during the three months ended January 31, 2013 were as follows:

	Shares

	In thousands
Outstanding Target Shares at October 31, 2012		5,688
Granted		—
Vested		—
Change in units due to performance and market conditions achievement for PRUs vested in the period		—
Forfeited		(160	)

Outstanding Target Shares at January 31, 2013		5,528

Outstanding Target Shares assigned a fair value at January 31, 2013		5,172	⁽¹⁾

⁽¹⁾: Excludes Target Shares for the third year 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.

Stock Options

	Three months ended January 31

	2013			2012
Weighted-average fair value of grants per share⁽¹⁾	$	4.01		$	9.49
Implied volatility		42	%		43	%
Risk-free interest rate		0.98	%		1.20	%
Dividend yield		3.77	%		1.73	%
Expected life in months		70			67

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

Performance-Based Restricted Units (PRUs)

	Three months ended January 31

	2013			2012
Weighted-average fair value of grants per share	$	0.00	⁽¹⁾	$	3.35	⁽²⁾
Expected volatility⁽³⁾		33	%		41	%
Risk-free interest rate		0.18	%		0.14	%
Dividend yield		3.94	%		1.78	%
Expected life in months		12			15

⁽¹⁾: Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011.
⁽²⁾: 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.
⁽³⁾: HP uses historic volatility for PRU awards as implied volatility cannot be used when simulating multivariate prices for companies in the S&P 500.