HP 2009 Annual Report Download - page 108

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 2: Stock-Based Compensation (Continued)
The details of restricted stock awards granted and assumed through acquisitions were as follows:
2009 2008 2007
Weighted- Weighted- Weighted-
Average Grant Average Grant Average Grant
Date Fair Date Fair Date Fair
Value Value Value
Shares Per Share Shares Per Share Shares Per Share
In thousands In thousands In thousands
Restricted stock . . 493 $36 1,393 $46 1,469 $43
Restricted stock
units ......... 343 $35 11,319 $45 151 $45
836 $36 12,712 $45 1,620 $44
In fiscal 2008, approximately 11 million restricted stock units with a weighted-average grant date
fair value of $45 per share were assumed through the acquisition of EDS.
The details of non-vested restricted stock awards at fiscal year end were as follows:
2009 2008 2007
Shares in thousands
Non-vested at October 31:
Restricted stock ............................................ 1,771 2,835 4,763
Restricted stock units ........................................ 5,093 10,095 935
6,864 12,930 5,698
As of October 31, 2009, there was $117 million of unrecognized pre-tax stock-based compensation
expense related to non-vested restricted stock awards, which HP expects to recognize over a weighted-
average vesting period of 1.6 years. As of October 31, 2008, there was $263 million of unrecognized
pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP
expected to recognize over a weighted-average vesting period of 1.2 years.
Employee Stock Purchase Plan
HP sponsors the Hewlett-Packard Company 2000 Employee Stock Purchase Plan, also known as
the Share Ownership Plan (the ‘‘ESPP’’), pursuant to which eligible employees may contribute up to
10% of base compensation, subject to certain income limits, to purchase shares of HP’s common stock.
For purchases made on or before April 30, 2009, employees purchased stock pursuant to the ESPP
semi-annually at a price equal to 85% of the fair market value on the purchase date, and HP
recognized expense based on a 15% discount of the fair market value for those purchases. Effective
May 1, 2009, HP modified the ESPP to eliminate the 15% discount applicable to purchases made
under the ESPP.
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