HP 2013 Annual Report Download - page 108

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 2: Stock-Based Compensation (Continued)
(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.
At October 31, 2013, 2012 and 2011, there was $3 million, $17 million and $82 million,
respectively, of unrecognized pre-tax stock-based compensation expense related to PRUs with an
assigned fair value, which HP expected to recognize over the remaining weighted-average vesting
period of 1 year, 1.1 years and 1.4 years, respectively.
Employee Stock Purchase Plan
HP sponsors the Hewlett-Packard Company 2011 Employee Stock Purchase Plan (the ‘‘2011
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 after October 31, 2011, employees purchased stock under the 2011
ESPP at a price equal to 95% of the fair market value on the purchase date. Because all the criteria of
a non-compensatory plan were met, no stock-based compensation expense was recorded in connection
with those purchases.
Shares Reserved
Shares available for future grant and shares reserved for future issuance under the ESPP and
incentive compensation plans were as follows:
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
Note 3: Net Earnings Per Share
HP calculates basic net EPS using net earnings and the weighted-average number of shares
outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock,
stock options and PRUs.
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