Stock purchase price (as a percent)

[Table of Contents](#i43adbcd383bc4dc48977980bcb999d17_79) HP INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements (Continued)Note 5: Stock-Based Compensation (Continued)(5)For awards subject to service-based vesting, the expected term was estimated using a simplified method; and for performance-contingent awards, the expected term represents an output from the lattice model.A summary of stock options activity is as follows:

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of October 31 |
|   | 2021 |  | 2020 |  | 2019 |
|   | Shares |  | Weighted-AverageExercisePrice |  | Weighted-AverageRemainingContractualTerm |  | AggregateIntrinsicValue |  | Shares |  | Weighted-AverageExercisePrice |  | Weighted-AverageRemainingContractualTerm |  | AggregateIntrinsicValue |  | Shares |  | Weighted-AverageExercisePrice |  | Weighted-AverageRemainingContractualTerm |  | AggregateIntrinsicValue |
|   | Inthousands |  |   |  | In years |  | Inmillions |  | Inthousands |  |   |  | In years |  | Inmillions |  | Inthousands |  |   |  | In years |  | Inmillions |
| Outstanding at beginning of year | 5,637  |  |  | $ | 17  |  |  |   |  |   |  | 7,093  |  |  | $ | 16  |  |  |   |  |   |  | 7,086  |  |  | $ | 14  |  |  |   |  |   |
| Granted | 2,691  |  |  | $ | 24  |  |  |   |  |   |  | 996  |  |  | $ | 18  |  |  |   |  |   |  | 2,451  |  |  | $ | 17  |  |  |   |  |   |
| Exercised | (1,843) |  |  | $ | 15  |  |  |   |  |   |  | (2,213) |  |  | $ | 14  |  |  |   |  |   |  | (2,429) |  |  | $ | 13  |  |  |   |  |   |
| Forfeited/cancelled/expired | (118) |  |  | $ | 18  |  |  |   |  |   |  | (239) |  |  | $ | 19  |  |  |   |  |   |  | (15) |  |  | $ | 10  |  |  |   |  |   |
| Outstanding at end of year | 6,367  |  |  | $ | 21  |  |  | 7.4 |  | $ | 68  |  |  | 5,637  |  |  | $ | 17  |  |  | 6.4 |  | $ | 10  |  |  | 7,093  |  |  | $ | 16  |  |  | 5.7 |  | $ | 15  |  |
| Vested and expected to vest | 6,367  |  |  | $ | 21  |  |  | 7.4 |  | $ | 68  |  |  | 5,637  |  |  | $ | 17  |  |  | 6.4 |  | $ | 10  |  |  | 7,093  |  |  | $ | 16  |  |  | 5.7 |  | $ | 15  |  |
| Exercisable | 2,392  |  |  | $ | 16  |  |  | 5.3 |  | $ | 34  |  |  | 3,196  |  |  | $ | 15  |  |  | 4.4 |  | $ | 9  |  |  | 4,707  |  |  | $ | 14  |  |  | 3.6 |  | $ | 15  |  |

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have realized had all option holders exercised their options on the last trading day of fiscal years 2021, 2020 and 2019. The aggregate intrinsic value is the difference between HP’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised in fiscal years 2021, 2020 and 2019 was $18 million, $12 million and $20 million, respectively. The total grant date fair value of options vested in fiscal years 2021, 2020 and 2019 was $3 million, $3 million and $9 million, respectively.As of October 31, 2021, total unrecognized pre-tax stock-based compensation expense related to stock options was $10 million, which is expected to be recognized over a weighted-average vesting period of 1.4 years.Employee Stock Purchase PlanHP sponsors the 2021 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. Pursuant to the terms of the 2021 ESPP, employees purchase stock under the 2021 ESPP at a price equal to 95% of HP’s closing stock price on the purchase date. No stock-based compensation expense was recorded in connection with those purchases because the criteria of a non-compensatory plan were met. The aggregate number of shares of HP’s stock authorized for issuance under the 2021 ESPP was 50 million. The 2021 ESPP came into effect on May 1, 2021 upon expiry of the 2011 ESPP. The 2021 ESPP terms are similar to the previous ESPP. Shares ReservedShares available for future grant and shares reserved for future issuance under the stock-based incentive compensation plans and the 2021 ESPP were as follows:

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | As of October 31 |
|   | 2021 |  | 2020 |  | 2019 |
|   | In thousands |
| Shares available for future grant(1) | 170,123  |  |  | 229,334  |  |  | 265,135  |  |
| Shares reserved for future issuance(1) | 205,968  |  |  | 264,110  |  |  | 301,608  |  |

(1) For years 2020 and 2019, shares authorized under the 2011 ESPP were included in the shares available for future grant         and shares reserved for future issuance.82
