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Stock-Based Compensation (Tables)

9 Months Ended

Jul. 31, 2013

	Three months ended July 31						Nine months ended July 31

	2013			2012			2013			2012
	In millions
Stock-based compensation expense	$	107		$	150		$	398		$	494
Income tax benefit		(36	)		(43	)		(125	)		(154	)

Stock-based compensation expense, net of tax	$	71		$	107		$	273		$	340

	Shares			Weighted- Average Grant Date Fair Value Per Share

	In thousands
Outstanding at October 31, 2012		25,532		$	31
Granted		19,677		$	15
Vested		(10,341	)	$	33
Forfeited		(2,328	)	$	25

Outstanding at July 31, 2013		32,540		$	21

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

	In thousands					In years		In millions
Outstanding at October 31, 2012		87,296		$	29
Granted		23,967		$	14
Exercised		(9,455	)	$	19
Forfeited/cancelled/expired		(17,224	)	$	25

Outstanding at July 31, 2013		84,584		$	27		4.1	$	363

Vested and expected to vest at July 31, 2013		80,322		$	27		3.9	$	328

Exercisable at July 31, 2013		48,470		$	33		1.9	$	69

	Nine months ended July 31

	2013			2012
Weighted-average fair value of grants per unit	$	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.

	Shares

	In thousands
Outstanding Target Shares at October 31, 2012		5,688
Forfeited		(293	)

Outstanding Target Shares at July 31, 2013		5,395

Outstanding Target Shares assigned a fair value at July 31, 2013		5,052	⁽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 July 31						Nine months ended July 31

	2013			2012			2013			2012
Weighted-average fair value of grants per option⁽¹⁾	$	6.53		$	6.70		$	4.08		$	9.30
Implied volatility		36	%		36	%		42	%		42	%
Risk-free interest rate		1.14	%		1.20	%		0.98	%		1.20	%
Expected dividend yield		2.36	%		2.40	%		3.72	%		1.77	%
Expected term in months		62			77			70			67

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

Performance-Based Restricted Units (PRUs)

	Nine months ended July 31

	2013			2012
Weighted-average fair value of grants per unit	$	0.00	⁽¹⁾	$	3.35	⁽²⁾
Expected volatility⁽³⁾		33	%		41	%
Risk-free interest rate		0.18	%		0.14	%
Expected dividend yield		3.94	%		1.78	%
Expected term 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 when simulating multivariate prices for companies in the S&P 500.