Net Earnings Per Share

9 Months Ended

Jul. 31, 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 July 31						Nine months ended July 31
	2020		2019		2020		2019
	In millions, except per share amounts
Numerator:
Net earnings	$	734	$	1,179	$	2,176	$	2,764
Denominator:
Weighted-average shares used to compute basic net EPS	1,417		1,499		1,435		1,528
Dilutive effect of employee stock plans	6		9		6		9
Weighted-average shares used to compute diluted net EPS	1,423		1,508		1,441		1,537
Net earnings per share:
Basic	$	0.52	$	0.79	$	1.52	$	1.81
Diluted	$	0.52	$	0.78	$	1.51	$	1.80
Anti-dilutive weighted-average stock-based compensation awards⁽¹⁾	15		7		13		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.