Net Earnings Per Share

6 Months Ended

Apr. 30, 2020

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 April 30				Six months ended April 30
	2020		2019		2020		2019
	In millions, except per share amounts
Numerator:
Net earnings	$	764	$	782	$	1,442	$	1,585
Denominator:
Weighted-average shares used to compute basic net EPS	1,435		1,529		1,444		1,543
Dilutive effect of employee stock plans	5		7		6		8
Weighted-average shares used to compute diluted net EPS	1,440		1,536		1,450		1,551
Net earnings per share:
Basic	$	0.53	$	0.51	$	1.00	$	1.03
Diluted	$	0.53	$	0.51	$	0.99	1.02
Anti-dilutive weighted-average stock-based compensation awards⁽¹⁾	14		8		12		6

⁽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.