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Net Earnings Per Share
 9 Months Ended
Jul. 31, 2012
Net Earnings Per Share  
Net Earnings Per Share

Note 3: Net Earnings Per Share

        HP calculates basic earnings and loss per share and diluted loss per share using net earnings or loss and the weighted-average number of shares outstanding during the reporting period. Diluted earnings per share includes any dilutive effect of outstanding stock options, PRUs, restricted stock units and restricted stock.

        The reconciliation of the numerators and denominators of the basic and diluted earnings and loss per share calculations was as follows:

 
   Three months ended
July 31 		  Nine months ended
July 31 		 
 
   2012   2011   2012   2011  
 
   In millions, except per share amounts
  

Numerator:

                          

Net (loss) earnings(1)

   $ (8,857 ) $ 1,926   $ (5,796 ) $ 6,835  
                   

Denominator:

                          

Weighted-average shares used to compute basic EPS

     1,971     2,054     1,977     2,129  

Dilutive effect of employee stock plans(2)

     —     26     —     32  
                   

Weighted-average shares used to compute diluted EPS(2)

     1,971     2,080     1,977     2,161  
                   

Net (loss) earnings per share:

                          

Basic

   $ (4.49 ) $ 0.94   $ (2.93 ) $ 3.21  

Diluted(2)

   $ (4.49 ) $ 0.93   $ (2.93 ) $ 3.16  
(1)
Net (loss) earnings available to participating securities were not significant for the three and nine months ended July 31, 2012 and 2011. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security.

(2)
For the three and nine months ended July 31, 2012, HP excluded from the calculation of basic loss per share 4 million shares and 15 million shares, respectively, potentially issuable under employee stock plans as their effect would be anti-dilutive.

        HP excludes options with exercise prices that are greater than the average market price from the calculation of diluted earnings per share because their effect would be anti-dilutive. For the three and nine months ended July 31, 2012, HP excluded from the calculation of diluted earnings per share options to purchase 74 million shares and 48 million shares, respectively, compared to 26 million shares and 23 million shares for the three and nine months ended July 31, 2011, respectively. In addition, HP also excluded from the calculation of diluted earnings per share options to purchase an additional 1 million shares and 9 million shares for the three and nine months ended July 31, 2012, respectively, compared to an additional 1 million shares for both the three and nine months ended July 31, 2011, respectively, whose combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price for HP's common stock because their effect would be anti-dilutive.