Stock-Based Compensation (Tables)

9 Months Ended

Jul. 31, 2011

	Nine months ended July 31

	2011			2010
Weighted-average fair value of grants per share	$	27.59	⁽¹⁾	$	57.13	⁽²⁾
Expected volatility⁽³⁾		30	%		38	%
Risk-free interest rate		0.38	%		0.73	%
Dividend yield		0.75	%		0.64	%
Expected life in months		19			22

⁽¹⁾: Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2009, for the second year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the first year of the three-year performance period applicable to PRUs granted in the nine months ended July 31, 2011. The estimated fair value of a Target Share for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in the nine months ended July 31, 2011 will be determined on the measurement date applicable to those PRUs, which will be the date that the annual cash flow 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 third year of the three-year performance period applicable to PRUs granted in fiscal 2008, for the second year of the three-year performance period applicable to PRUs granted in fiscal 2009 and for the first year of the three-year performance period applicable to PRUs granted in the nine months ended July 31, 2010.
⁽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.



Outstanding Target Shares at October 31, 2010	18,508
Granted	5,950
Vested	—
Change in units due to performance and market conditions achievement for PRUs vested in the period	—
Forfeited	(1,637	)

Outstanding Target Shares at July 31, 2011	22,821

Outstanding Target Shares assigned a fair value at July 31, 2011	17,098	⁽¹⁾

⁽¹⁾: Excludes Target Shares for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in the nine months ended July 31, 2011 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 cash flow goals are approved.

	Three months ended July 31						Nine months ended July 31

	2011			2010			2011			2010
Weighted-average fair value of grants per share⁽¹⁾	$	8.44		$	13.66		$	10.24		$	14.04
Implied volatility		28	%		32	%		28	%		29	%
Risk-free interest rate		1.64	%		1.96	%		1.87	%		2.29	%
Dividend yield		1.34	%		0.69	%		0.94	%		0.64	%
Expected life in months		61			60			60			61

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

			Weighted- Average Exercise Price Per Share			Aggregate Intrinsic Value (in millions)

Outstanding at October 31, 2010	142,916		$	28
Granted and assumed through acquisition	1,243		$	24
Exercised	(33,736	)	$	24
Forfeited/cancelled/expired	(3,311	)	$	41

Outstanding at July 31, 2011	107,112		$	29	2.5	$	961

Vested and expected to vest at July 31, 2011	106,145		$	29	2.5	$	951

Exercisable at July 31, 2011	100,333		$	29	2.1	$	890

			Weighted- Average Grant Date Fair Value Per Share

Outstanding at October 31, 2010	5,848		$	45
Granted	9,156		$	41
Vested	(2,870	)	$	45
Forfeited	(651	)	$	44

Outstanding at July 31, 2011	11,483		$	42