XML 49 R29.htm IDEA: XBRL DOCUMENT v2.4.1.9
Stock-Based Compensation (Table)
12 Months Ended
Oct. 31, 2014
Share-based compensation  
Schedule of stock based compensation expense and the resulting tax benefits

 

                                                                                                                                                                                    

 

 

For the fiscal years ended
October 31

 

 

 

2014

 

2013

 

2012

 

 

 

In millions

 

Stock-based compensation expense

 

$

560

 

$

500

 

$

635

 

Income tax benefit

 

 

(179

)

 

(158

)

 

(197

)

 

 

 

 

 

 

 

 

Stock-based compensation expense, net of tax

 

$

381

 

$

342

 

$

438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of restricted stock awards activity

 

                                                                                                                                                                                    

 

 

As of October 31

 

 

 

2014

 

2013

 

2012

 

 

 

Shares

 

Weighted-
Average
Grant Date
Fair Value
Per Share

 

Shares

 

Weighted-
Average
Grant Date
Fair Value
Per Share

 

Shares

 

Weighted-
Average
Grant Date
Fair Value
Per Share

 

 

 

In thousands

 

 

 

In thousands

 

 

 

In thousands

 

 

 

Outstanding at beginning of year

 

 

32,262

 

$

21

 

 

25,532

 

$

31

 

 

16,813

 

$

39

 

Granted

 

 

26,036

 

$

28

 

 

20,707

 

$

15

 

 

20,316

 

$

27

 

Vested

 

 

(14,253

)

$

24

 

 

(10,966

)

$

33

 

 

(8,521

)

$

38

 

Forfeited

 

 

(3,237

)

$

22

 

 

(3,011

)

$

24

 

 

(3,076

)

$

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at end of year

 

 

40,808

 

$

24

 

 

32,262

 

$

21

 

 

25,532

 

$

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

                                                                                                                                                                                    

 

 

As of October 31

 

 

 

2014

 

2013

 

2012

 

 

 

In thousands

 

Shares available for future grant

 

 

246,852 

 

 

300,984 

 

 

152,837 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares reserved for future issuance

 

 

344,848 

 

 

417,642 

 

 

270,498 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Options  
Share-based compensation  
Schedule of weighted-average fair value and the assumptions used to measure fair value

 

                                                                                                                                                                                    

 

 

For the fiscal years ended October 31

 

 

 

2014

 

2013

 

2012

 

Weighted-average fair value(1)

 

 

$

 

 

$

 

 

$

 

Expected volatility(2)

 

 

33.1 

%

 

41.7 

%

 

41.9 

%

Risk-free interest rate(3)

 

 

1.8 

%

 

1.1 

%

 

1.2 

%

Expected dividend yield(4)

 

 

2.1 

%

 

3.6 

%

 

1.8 

%

Expected term in years(5)

 

 

5.7 

 

 

5.9 

 

 

5.6 

 


(1)

The weighted-average fair value was based on stock options granted during the period.

(2)

For awards granted in fiscal 2014, expected volatility for awards subject to service-based vesting was estimated using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent awards, expected volatility was estimated using the historical volatility of HP's common stock. For awards granted in fiscal 2013 and fiscal 2012, expected volatility for all awards was estimated using the implied volatility derived from options traded on HP's common stock.

(3)

The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.

(4)

The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award.

(5)

For awards subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns; and for performance-contingent awards, the expected term represents an output from the lattice model.

 

Schedule of stock options activity

 

                                                                                                                                                                                    

 

 

As of October 31

 

 

 

2014

 

2013

 

2012

 

 

 

Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Term

 

Aggregate
Intrinsic
Value

 

Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Term

 

Aggregate
Intrinsic
Value

 

Shares

 

Weighted-
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contractual
Term

 

Aggregate
Intrinsic
Value

 

 

 

In thousands

 

 

 

In years

 

In millions

 

In thousands

 

 

 

In years

 

In millions

 

In thousands

 

 

 

In years

 

In millions

 

Outstanding at beginning of year

 

 

84,042

 

$

27

 

 

 

 

 

 

 

 

87,296

 

$

29

 

 

 

 

 

 

 

 

120,243

 

$

28

 

 

 

 

 

 

 

Granted

 

 

9,575

 

$

28

 

 

 

 

 

 

 

 

25,785

 

$

15

 

 

 

 

 

 

 

 

7,529

 

$

27

 

 

 

 

 

 

 

Exercised

 

 

(11,145

)

$

18

 

 

 

 

 

 

 

 

(10,063

)

$

19

 

 

 

 

 

 

 

 

(29,683

)

$

20

 

 

 

 

 

 

 

Forfeited/cancelled/expired

 

 

(24,619

)

$

31

 

 

 

 

 

 

 

 

(18,976

)

$

25

 

 

 

 

 

 

 

 

(10,793

)

$

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at end of year

 

 

57,853

 

$

27

 

 

4.3

 

$

629

 

 

84,042

 

$

27

 

 

3.9

 

$

303

 

 

87,296

 

$

29

 

 

3.0

 

$

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested and expected to vest at end of year

 

 

54,166

 

$

27

 

 

4.1

 

$

571

 

 

80,004

 

$

27

 

 

3.7

 

$

274

 

 

85,935

 

$

29

 

 

2.9

 

$

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at end of year

 

 

30,459

 

$

33

 

 

2.3

 

$

197

 

 

49,825

 

$

33

 

 

1.8

 

$

58

 

 

68,437

 

$

31

 

 

1.9

 

$

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of significant ranges of outstanding and exercisable stock options

 

                                                                                                                                                                                    

 

 

As of October 31, 2014

 

 

 

Options Outstanding

 

Options Exercisable

 

Range of Exercise Prices

 

Shares
Outstanding

 

Weighted-
Average
Remaining
Contractual Term

 

Weighted-
Average
Exercise
Price

 

Shares
Exercisable

 

Weighted-
Average
Exercise
Price

 

 

 

In thousands

 

In years

 

 

 

In thousands

 

 

 

$0-$9.99

 

 

324 

 

 

3.7 

 

$

 

 

323 

 

$

 

$10-$19.99

 

 

18,387 

 

 

5.8 

 

$

14 

 

 

3,620 

 

$

14 

 

$20-$29.99

 

 

21,077 

 

 

5.8 

 

$

26 

 

 

9,358 

 

$

25 

 

$30-$39.99

 

 

2,502 

 

 

3.5 

 

$

36 

 

 

1,628 

 

$

36 

 

$40-$49.99

 

 

14,910 

 

 

0.4 

 

$

43 

 

 

14,877 

 

$

43 

 

$50-$59.99

 

 

511 

 

 

2.3 

 

$

52 

 

 

511 

 

$

52 

 

$60 and over

 

 

142 

 

 

0.1 

 

$

71 

 

 

142 

 

$

71 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,853 

 

 

4.3 

 

$

27 

 

 

30,459 

 

$

33