Net Earnings Per Share

3 Months Ended

Jan. 31, 2013

Net Earnings Per Share

Net Earnings Per Share

Note 3: Net Earnings Per Share

        HP calculates basic earnings per share ("EPS") using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted EPS 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 EPS calculations was as follows::

	Three months ended January 31
	2013		2012
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,232	$	1,468
Denominator:
Weighted-average shares used to compute basic EPS		1,953		1,981
Dilutive effect of employee stock plans		3		17
Weighted-average shares used to compute diluted EPS		1,956		1,998
Net earnings per share:
Basic	$	0.63	$	0.74
Diluted	$	0.63	$	0.73

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Net earnings available to participating securities were not significant for the first quarter of fiscal 2013 and 2012. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security.

        HP excludes options with exercise prices that are greater than the average market price from the calculation of diluted EPS because the effect of their inclusion would be anti-dilutive. As such, in the first quarter of fiscal 2013 and 2012, HP excluded from the calculation of diluted EPS options to purchase 74 million shares and 51 million shares, respectively. Further, during the same time periods, HP also excluded from the calculation of diluted EPS options to purchase an additional 12 million shares and 10 million shares, respectively, as their 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.