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Net Earnings Per Share
 9 Months Ended
Jul. 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, and restricted stock.

        The reconciliations of the numerators and denominators of each of the basic and diluted EPS calculations were as follows:

 
   Three months ended
July 31		   Nine months ended
July 31		  
 
   2013   2012   2013   2012  
 
   In millions, except per share amounts
  

Numerator:

                          

Net earnings (loss)(1)

   $ 1,390   $ (8,857 ) $ 3,699   $ (5,796 )
                   

Denominator:

                          

Weighted-average shares used to compute basic EPS

     1,929     1,971     1,939     1,977  

Dilutive effect of employee stock plans

     19     —     13     —  
                   

Weighted-average shares used to compute diluted EPS

     1,948     1,971     1,952     1,977  
                   

Net earnings (loss) per share:

                          

Basic

   $ 0.72   $ (4.49 ) $ 1.91   $ (2.93 )

Diluted(2)

   $ 0.71   $ (4.49 ) $ 1.89   $ (2.93 )
(1)
Net earnings (loss) available to participating securities were not significant for the three and nine months ended July 31, 2013 and 2012. 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 diluted loss per share 4 million shares and 15 million shares, respectively, potentially issuable under employee stock plans, as their effect, if included, would have been anti-dilutive.

        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 nine months ended July 31, 2013, HP excluded from the calculation of diluted EPS options to purchase 43 million shares and 52 million shares, respectively, compared to 74 million shares and 48 million shares for the three and nine months ended July 31, 2012, respectively. HP also excluded from the calculation of diluted EPS options to purchase an additional 8 million shares and 2 million shares for the three and nine months ended July 31, 2013, respectively, compared to an additional 1 million and 9 million shares for the three and nine months ended July 31, 2012, 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.