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 awards, stock options, performance-based awards and shares purchased under the 2011 employee stock purchase plan.

A reconciliation of the number of shares used for basic and diluted net EPS calculations is as follows:



	Three months ended April 30				Six months ended April 30
	2018		2017		2018		2017
	In millions, except per share amounts
Numerator:
Net earnings	$	1,058	$	559	$	2,996	$	1,170
Denominator:
Weighted-average shares used to compute basic net EPS	1,630		1,688		1,640		1,696
Dilutive effect of employee stock plans	16		21		18		20
Weighted-average shares used to compute diluted net EPS	1,646		1,709		1,658		1,716
Net earnings per share:
Basic	$	0.65	$	0.33	$	1.83	$	0.69
Diluted	$	0.64	$	0.33	1.81		0.68
Anti-dilutive weighted-average stock-based compensation awards⁽¹⁾	—		3		—		4

⁽¹⁾

HP excludes stock options and restricted stock units where the assumed proceeds exceed the average market price from the calculation of diluted net EPS because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.