Stock-Based Compensation (Tables)

12 Months Ended

Oct. 31, 2013

Share-based compensation

Schedule of stock based compensation expense and the resulting tax benefits

	2013			2012			2011
	In millions
Stock-based compensation expense	$	500		$	635		$	685
Income tax benefit		(158	)		(197	)		(219	)
Stock-based compensation expense, net of tax	$	342		$	438		$	466

Schedule of changes in non-vested restricted stock awards

	2013					2012					2011
	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		25,532		$	31		16,813		$	39		5,848		$	45
Granted		20,707		$	15		20,316		$	27		17,569		$	38
Vested		(10,966	)	$	33		(8,521	)	$	38		(5,660	)	$	41
Forfeited		(3,011	)	$	24		(3,076	)	$	34		(944	)	$	43
Outstanding at end of year		32,262		$	21		25,532		$	31		16,813		$	39

Schedule of changes in non-vested PRUs

	2013			2012			2011
	Shares in thousands
Outstanding Target Shares at beginning of year		5,688			11,382			18,508
Granted		—			1,251			5,950
Change in units due to performance and market conditions achievement for PRUs vested in the year(1)		(4,307	)		(5,617	)		(10,862	)
Forfeited		(356	)		(1,328	)		(2,214	)
Outstanding Target Shares at end of year		1,025			5,688			11,382
Outstanding Target Shares of PRUs assigned a fair value at end of year		690	(2)		3,492	(3)		5,867	(4)

⁽¹⁾

The minimum level of TSR was not met for PRUs granted in fiscal 2011, 2010 and 2009, which resulted in the cancellation of Target Shares.

⁽²⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2012 as the measurement date had 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.

⁽³⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2011 and for the second and third years for PRUs granted in fiscal 2012 as the measurement dates had not yet been established.

⁽⁴⁾

Excludes Target Shares for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in fiscal 2011 as the measurement dates had not yet been established.

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

	2013		2012		2011
	Shares in thousands
Shares available for future grant at October 31		300,984		152,837		172,259
Shares reserved for future issuance under all stock-related benefit plans at October 31		417,642		270,498		319,602

Stock Options

Share-based compensation

Schedule of weighted-average fair value and the assumptions used to measure fair value

	2013			2012			2011
Weighted-average fair value of grants per option(1)	$	4.26		$	9.06		$	7.85
Expected volatility(2)		42	%		42	%		41	%
Risk-free interest rate(3)		1.07	%		1.17	%		1.20	%
Expected dividend yield(4)		3.64	%		1.83	%		1.97	%
Expected term in months(5)		71			67			63

⁽¹⁾

The fair value calculation was based on stock options granted during the period.

⁽²⁾

Determined using implied volatility from traded options on HP's stock.

⁽³⁾

Determined using the yield on U.S. Treasury zero-coupon issues.

⁽⁴⁾

Determined using a constant dividend yield during the expected term of the option.

⁽⁵⁾

Determined using historical exercise and post-vesting termination patterns.

Schedule of changes in option awards outstanding

	2013									2012									2011
	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		87,296		$	29						120,243		$	28						142,916		$	28
Granted(1)		25,785		$	15						7,529		$	27						18,804		$	21
Exercised		(10,063	)	$	19						(29,683	)	$	20						(37,121	)	$	23
Forfeited/cancelled/expired		(18,976	)	$	25						(10,793	)	$	35						(4,356	)	$	39
Outstanding at end of year		84,042		$	27		3.9	$	303		87,296		$	29		3.0	$	15		120,243		$	28		3.0	$	460
Vested and expected to vest at end of year		80,004		$	27		3.7	$	274		85,935		$	29		2.9	$	15		117,066		$	28		2.9	$	442
Exercisable at end of year		49,825		$	33		1.8	$	58		68,437		$	31		1.9	$	12		97,967		$	29		2.0	$	332

⁽¹⁾

In connection with fiscal 2011 acquisitions, HP assumed options to purchase approximately 6 million shares with a weighted-average exercise price of $14 per share.

Schedule of information about options outstanding

Information about options outstanding at October 31, 2013 was as follows:

	Options Outstanding
							Options Exercisable
			Weighted- Average Remaining Contractual Life
Range of Exercise Prices	Shares Outstanding				Weighted- Average Exercise Price		Shares Exercisable		Weighted- Average Exercise Price
	In thousands		In years				In thousands
$0-$9.99		616		4.3	$	7		595	$	7
$10-$19.99		27,161		6.7	$	14		3,991	$	14
$20-$29.99		18,906		5.6	$	25		8,204	$	25
$30-$39.99		20,018		0.5	$	32		19,940	$	32
$40-$49.99		16,422		1.4	$	43		16,263	$	43
$50-$59.99		667		3.2	$	52		580	$	52
$60 and over		252		0.7	$	73		252	$	73
		84,042		3.9	$	27		49,825	$	33

PRUs

Share-based compensation

Schedule of weighted-average fair value and the assumptions used to measure fair value

	2013			2012			2011
Weighted-average fair value of grants per unit	$	0.00	(1)	$	3.35	(2)	$	27.59	(3)
Expected volatility(4)		33	%		41	%		30	%
Risk-free interest rate		0.18	%		0.14	%		0.38	%
Expected dividend yield		3.94	%		1.78	%		0.75	%
Expected term in months		12			15			19

⁽¹⁾

Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011. The weighted-average fair value per unit is zero based on the result of the Monte-Carlo simulation model using the weighted-average assumptions on the measurement date.

⁽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⁾

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 fiscal 2011.

⁽⁴⁾

HP uses historic volatility for PRU awards when simulating multivariate prices for companies in the S&P 500.

Schedule of weighted-average fair value for PRU awards granted in fiscal year 2012

	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.