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 July 31				Nine months ended July 31
	2018		2017		2018		2017
	In millions, except per share amounts
Numerator:
Net earnings	$	880	$	696	$	3,876	$	1,866
Denominator:
Weighted-average shares used to compute basic net EPS	1,601		1,681		1,627		1,694
Dilutive effect of employee stock plans	17		14		18		11
Weighted-average shares used to compute diluted net EPS	1,618		1,695		1,645		1,705

Basic	$	0.55	$	0.41	$	2.38	$	1.10
Diluted	$	0.54	$	0.41	2.36		1.09
Anti-dilutive weighted-average stock-based compensation awards⁽¹⁾	—		1		—		3

⁽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.