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Net Earnings Per Share
 6 Months Ended
Apr. 30, 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, and restricted stock.

        The reconciliation of the numerators and denominators of the basic and diluted EPS calculations was as follows:

 
   Three months ended
April 30		   Six months ended
April 30		  
 
   2013   2012   2013   2012  
 
   In millions, except per share amounts
  

Numerator:

                          

Net earnings(1)

   $ 1,077   $ 1,593   $ 2,309   $ 3,061  
                   

Denominator:

                          

Weighted-average shares used to compute basic EPS

     1,935     1,979     1,944     1,980  

Dilutive effect of employee stock plans

     12     8     8     15  
                   

Weighted-average shares used to compute diluted EPS

     1,947     1,987     1,952     1,995  
                   

Net earnings per share:

                          

Basic

   $ 0.56   $ 0.80   $ 1.19   $ 1.55  

Diluted

   $ 0.55   $ 0.80   $ 1.18   $ 1.53  
(1)
Net earnings available to participating securities were not significant for the three and six months ended April 30, 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 their effect would be anti-dilutive. As such, for both the three and six months ended April 30, 2013, HP excluded from the calculation of diluted EPS options to purchase 53 million shares compared to 50 million shares for both the three and six months ended April 30, 2012. Further, during the same time periods, HP also excluded from the calculation of diluted EPS options to purchase an additional 2 million shares and 6 million shares, respectively, for the three and six months ended April 30, 2013, compared to an additional 10 million shares for both the three and six months ended April 30, 2012, 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.