HP 2013 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)
Information about options outstanding at October 31, 2013 was as follows:
Options Outstanding
Options Exercisable
Weighted-
Average Weighted- Weighted-
Remaining Average Average
Shares Contractual Exercise Shares Exercise
Range of Exercise Prices Outstanding Life Price Exercisable 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
At October 31, 2013, 2012 and 2011 there was $112 million, $157 million and $264 million,
respectively, of unrecognized pre-tax stock-based compensation expense related to stock options, which
HP expected to recognize over a weighted-average vesting period of 2.2 years, 1.8 years and 2.3 years,
respectively.
Performance-Based Restricted Units
For PRU awards granted in fiscal 2012, HP estimates the fair value of the Target Shares using
HP’s closing stock price on the measurement date. The weighted-average fair value for these PRUs was
as follows:
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.
For PRU awards granted prior to fiscal 2012, HP estimates the fair value of the Target Shares
subject to those awards using the Monte Carlo simulation model, as the TSR modifier represents a
market condition. The weighted-average fair values of these PRU awards and the following weighted-
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