HP 2015 Annual Report Download - page 129
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Table of Contents
A summary of restricted stock awards activity is as follows:
In fiscal 2015, HP assumed approximately 8 million shares of restricted stock units through acquisition with a weighted-average grant date fair value of
$33 per share.
The total grant date fair value of restricted stock awards vested in fiscal 2015, 2014 and 2013 was $593 million, $234 million and $247 million,
respectively, net of taxes. As of October 31, 2015, total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards
was $652 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.5 years.
HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP
estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a
lattice model as these awards contain market conditions. The weighted-average fair value and the assumptions used to measure fair value were as follows:
127
Outstanding at beginning of year 40,808 $ 24 32,262 $ 21 25,532 $ 31
Granted and assumed through
acquisition 26,991 $ 35 26,036 $ 28 20,707 $ 15
Vested (34,177) $ 26 (14,253) $ 24 (10,966) $ 33
Forfeited (3,905) $ 29 (3,237) $ 22 (3,011) $ 24
Outstanding at end of year 29,717 $ 32 40,808 $ 24 32,262 $ 21
Weighted-average fair value(1) $8 $7 $4
Expected volatility(2) 26.8% 33.1% 41.7%
Risk-free interest rate(3) 1.7% 1.8% 1.1%
Expected dividend yield(4) 1.8% 2.1% 3.6%
Expected term in years(5) 5.9 5.7 5.9
(1) The weighted-average fair value was based on stock options granted during the period.
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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