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Net Earnings Per Share
 6 Months Ended
Apr. 30, 2014
Net Earnings Per Share  
Net Earnings Per Share

Note 3: Net Earnings Per Share

        HP calculates basic net earnings per share ("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 awards, stock options and performance-based awards.

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

 
   Three months ended
April 30		   Six months ended
April 30		  
 
   2014   2013   2014   2013  
 
   In millions, except per share amounts
  

Numerator:

                          

Net earnings(1)

   $ 1,273   $ 1,077   $ 2,698   $ 2,309  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Denominator:

                          

Weighted-average shares used to compute basic net EPS          

     1,890     1,935     1,898     1,944  

Dilutive effect of employee stock plans

     26     12     24     8  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Weighted-average shares used to compute diluted net EPS          

     1,916     1,947     1,922     1,952  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Net earnings per share:

                          

Basic

   $ 0.67   $ 0.56   $ 1.42   $ 1.19  

Diluted

   $ 0.66   $ 0.55   $ 1.40   $ 1.18  
(1)
Net earnings available to participating securities were not significant for the three and six months ended April 30, 2014 and 2013. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities.

        HP excludes options with exercise prices that are greater than the average market price from the calculation of diluted net EPS because their effect would be anti-dilutive. As such, for both the three and six months ended April 30, 2014, HP excluded options to purchase 19 million shares from the calculation of diluted net EPS compared to 53 million shares for both the three and six months ended April 30, 2013. HP also excluded options to purchase an additional 7 million shares and 8 million shares for the three and six months ended April 30, 2014, respectively, from the calculation of diluted net EPS compared to an additional 2 million shares and 6 million shares for the three and six months ended April 30, 2013, respectively, as their combined exercise price, unrecognized compensation and excess tax benefits were greater in each of those periods than the average market price for HP's stock.