Stockholders' Equity

9 Months Ended

Jul. 31, 2011

Note 13: Stockholders' Equity

Share Repurchase Program

HP's share repurchase program authorizes both open market and private repurchase transactions. In the three and nine months ended July 31, 2011, HP executed share repurchases of 126 million shares and 242 million shares, respectively. For the three months ended July 31, 2011, repurchases of 128 million shares were settled for $4.6 billion. For the nine months ended July 31, 2011, repurchases of 245 million shares were settled for $9.6 billion, which included 4 million shares repurchased in transactions that were executed in fiscal 2010 but settled in the first quarter of fiscal 2011. HP had approximately 1 million shares repurchased in the third quarter of fiscal 2011 that will be settled in the fourth quarter of fiscal 2011. HP paid approximately $2.6 billion in connection with repurchases of approximately 55 million shares during the three months ended July 31, 2010 and paid approximately $7.1 billion in connection with repurchases of approximately 144 million shares in the first nine months of fiscal 2010.

As of July 31, 2011, HP had remaining authorization of $1.3 billion for future share repurchases under the $10.0 billion repurchase authorization approved by HP's Board of Directors on August 29, 2010. On July 21, 2011, HP's Board of Directors authorized an additional $10.0 billion for future share repurchases.

Comprehensive Income

The changes in the components of OCI, net of taxes, were as follows:

		Three months ended July 31

		2011		2010
		In millions
Net earnings		$	1,926	$	1,773
Net change in unrealized gains on available-for-sale securities, net of tax of $3 million in 2011 and $1 million in 2010			5		2
Net change in unrealized gains/losses on cash flow hedges:
	Unrealized gains recognized in OCI, net of tax of $46 million in 2011 and $58 million in 2010		49		85
	Losses (gains) reclassified into income, net of tax benefit of $117 million in 2011 and net of tax of $145 million in 2010		222		(251	)

			271		(166	)

Net change in cumulative translation adjustment, net of tax of $6 million in 2011 and $18 million in 2010			3		(53	)
Net change in unrealized components of defined benefit plans, net of tax of $6 million in 2011 and $5 million in 2010			39		32

Comprehensive income		$	2,244	$	1,588

		Nine months ended July 31

		2011			2010
		In millions
Net earnings		$	6,835		$	6,223
Net change in unrealized gains on available-for-sale securities, net of tax of $1 million in 2011 and $6 million in 2010			15			11
Net change in unrealized gains/losses on cash flow hedges:
	Unrealized (losses) gains recognized in OCI, net of tax benefit of $195 million in 2011 and net of tax of $296 million in 2010		(389	)		532
	Losses (gains) reclassified into income, net of tax benefit of $226 million in 2011 and net of tax of $176 million in 2010		435			(321	)

			46			211

Net change in cumulative translation adjustment, net of tax of $24 million in 2011 and $16 million in 2010			135			(42	)
Net change in unrealized components of defined benefit plans, net of tax of $126 million in 2011 and $73 million in 2010			367			127

Comprehensive income		$	7,398		$	6,530

The components of accumulated other comprehensive loss, net of taxes, were as follows:

	July 31, 2011			October 31, 2010

	In millions
Net unrealized gain on available-for-sale securities	$	35		$	20
Net unrealized loss on cash flow hedges		(155	)		(201	)
Cumulative translation adjustment		(296	)		(431	)
Unrealized components of defined benefit plans		(2,858	)		(3,225	)

Accumulated other comprehensive loss	$	(3,274	)	$	(3,837	)

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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