XML 51 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation (Tables)
 6 Months Ended
Apr. 30, 2014
Share-based compensation  
Schedule of stock based compensation expense and the resulting tax benefits

 

 

 
   Three months
ended
April 30		   Six months
ended
April 30		  
 
   2014   2013   2014   2013  
 
   In millions
  

Stock-based compensation expense

   $ 130   $ 107   $ 300   $ 291  

Income tax benefit

     (43 )   (32 )   (96 )   (89 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Stock-based compensation expense, net of tax

   $ 87   $ 75   $ 204   $ 202  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
Schedule of changes in non-vested restricted stock awards outstanding

 

 

 
   Six months ended
April 30, 2014		  
 
   Shares   Weighted-
Average
Grant Date
Fair Value
Per Share		  
 
   In thousands
    
  

Outstanding at beginning of period

     32,262   $ 21  

Granted

     22,012   $ 27  

Vested

     (12,424 ) $ 24  

Forfeited

     (1,136 ) $ 21  
             
​ ​ ​ ​ ​ ​ ​ ​

Outstanding at end of period

     40,714   $ 23  
             
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
             
Stock Options
  
Share-based compensation  
Schedule of weighted-average fair value and the assumptions used to measure fair value

 

 

 
   Three months
ended
April 30		   Six months
ended
April 30		  
 
   2014   2013   2014   2013  

Weighted-average fair value of grants per option(1)

   $ 7.03   $ 4.89   $ 7.43   $ 4.03  

Expected volatility(2)

     30 %   35 %   34 %   42 %

Risk-free interest rate(3)

     1.59 %   0.78 %   1.78 %   0.98 %

Expected dividend yield(4)

     2.13 %   2.90 %   2.15 %   3.75 %

Expected term in months(5)

     63     62     68     70  
(1)
The fair value calculation was based on stock options granted during the period.

(2)
For awards granted in fiscal 2014, expected volatility for stock options subject to service-based vesting was determined using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent stock options, expected volatility was determined using the historical volatility of HP's common stock. For awards granted in fiscal 2013, expected volatility for stock options subject to service-based vesting and performance-contingent stock options was determined using the implied volatility derived from options traded on HP's common stock.

(3)
The risk-free interest rate was determined using the yield on U.S. Treasury zero-coupon issues at the grant date.

(4)
The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the option.

(5)
For stock options subject to service-based vesting, the expected term was determined using historical exercise and post-vesting termination patterns; and for performance-contingent stock options, the expected term represents an output from the lattice model.
Schedule of changes in options outstanding

 

 

 
   Six months ended April 30, 2014  
 
   Shares   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual
Term		   Aggregate
Intrinsic
Value		  
 
   In thousands
    
   In years
   In millions
  

Outstanding at beginning of period

     84,042   $ 27              

Granted

     8,868   $ 27              

Exercised

     (4,955 ) $ 17              

Forfeited/cancelled/expired

     (20,098 ) $ 32              
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Outstanding at end of period

     67,857   $ 26     4.8   $ 647  
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                         

Vested and expected to vest at end of period

     62,727   $ 27     4.7   $ 580  
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                         

Exercisable at end of period

     31,835   $ 33     2.7   $ 171  
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​