HP 2007 Annual Report Download - page 106

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 2: Stock-Based Compensation (Continued)
Option activity under the principal option plans as of October 31 during each fiscal year were as follows:
2007 2006
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
Outstanding at beginning of year........... 445,740 $31 531,233 $30
Granted and assumed through
acquisitions ......................................
45,562 $40 52,271 $31
Exercised................................................ (106,302) $26 (100,986) $22
Forfeited/cancelled/expired ................... (17,661) $43 (36,778) $40
Outstanding at end of year..................... 367,339 $33 4.2 $7,375 445,740 $31 4.7 $4,861
Vested and expected to vest at end of
year...................................................
361,496 $33 4.2 $7,256 437,109 $31 4.6 $4,742
Exercisable at end of year...................... 265,366 $33 3.4 $5,298 316,341 $33 4.0 $3,081
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between HP’ s
closing stock price on the last trading day of fiscal 2007 and fiscal 2006 and the exercise price, multiplied by the number of
in-the-money options) that would have been received by the option holders had all option holders exercised their options on
October 31, 2007 and 2006. This amount changes based on the fair market value of HP’ s stock. Total intrinsic value of
options exercised in fiscal 2007 and 2006 was $2.0 billion and $1.2 billion, respectively. Total fair value of options vested
and expensed in fiscal 2007 and 2006 was $297 million and $265 million, respectively, net of taxes.
Option activity was as follows for the fiscal year ended October 31, 2005:
Shares
Weighted-
Average
Exercise
Price
In thousands
Outstanding at beginning of year...................................................................................................... 549,868 $30
Granted ............................................................................................................................................. 63,635 $22
Assumed through acquisitions .......................................................................................................... 558 $1
Exercised .......................................................................................................................................... (46,628) $17
Forfeited or cancelled ....................................................................................................................... (36,200) $35
Outstanding at end of year................................................................................................................ 531,233 $30
Exercisable at end of year................................................................................................................. 386,303 $33
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