Net Earnings Per Share

3 Months Ended

Jan. 31, 2019

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 units, 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 January 31
	2019		2018
	In millions, except per share amounts
Numerator:
Net earnings	$	803	$	1,938
Denominator:
Weighted-average shares used to compute basic net EPS	1,556		1,650
Dilutive effect of employee stock plans	11		19
Weighted-average shares used to compute diluted net EPS	1,567		1,669
Net earnings per share:
Basic	$	0.52	$	1.17
Diluted	$	0.51	$	1.16
Anti-dilutive weighted-average options⁽¹⁾	5		—

⁽¹⁾

HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, 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.