HP 2007 Annual Report Download - page 135

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 14: Stockholders’ Equity (Continued)
maximum price that was determined in advance of any repurchases being completed under the program, thereby effectively
hedging HP’ s repurchase price. The minimum and maximum number of shares HP could receive under the program was
52 million shares and 70 million shares, respectively. The exact number of shares to be repurchased was based upon the
volume weighted-average market price of HP’ s shares during each weekly settlement period, subject to the minimum and
maximum price as well as regulatory limitations on the number of shares HP was permitted to repurchase. HP decreased its
shares outstanding each settlement period as shares were physically received. HP completed all repurchases under the PVSPP
on March 9, 2007. As of that date, HP had cumulatively received a total of 53 million shares. HP retired all shares
repurchased and no longer deems those shares outstanding.
HP’ s Board of Directors authorized an additional $8.0 billion, $10.0 billion and $4.0 billion for future share repurchases
in fiscal 2007, 2006 and 2005, respectively. As of October 31, 2007, HP had remaining authorization of $2.7 billion for
future share repurchases. On November 19, 2007, HP’ s Board of Directors authorized an additional $8.0 billion for future
share repurchases.
Comprehensive Income
The changes in the components of other comprehensive income, net of taxes, were as follows for the following fiscal
years ended October 31:
2007 2006 2005
In millions
Net earnings..................................................................................................................................... $7,264 $6,198 $2,398
Net change in unrealized gains on available-for-sale securities:
Change in net unrealized gains, net of taxes of $2 in 2007, $3 in 2006 and of $6 in 2005........... 2 7 9
Net unrealized gains reclassified into earnings, net of taxes of $7 in 2007, $9 in 2006 and $6 in
2005 ...........................................................................................................................................
(14) (13) (10)
(12) (6) (1)
Net change in unrealized losses on cash flow hedges:
Change in net unrealized losses, net of tax benefit of $37 in 2007, $24 in 2006 and $16 in
2005 ...........................................................................................................................................
(63) (41) (28)
Net unrealized losses reclassified into earnings, net of tax benefit of $26 in 2007, $24 in 2006
and $56 in 2005..........................................................................................................................
45 41 97
(18) —69
Net change in cumulative translation adjustment, net of tax benefit of $37 in 2007, $40 in 2006
and $8 in 2005 .................................................................................................................................
106 54 (17)
Net change in additional minimum pension liability, net of tax benefit of $1 in 2007, tax benefit
of $1 in 2006 and taxes of $89 in 2005............................................................................................
(3) (9) 171
Comprehensive income.................................................................................................................... $7,337 $6,237 $2,620
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