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Net Earnings Per Share
 9 Months Ended
Jul. 31, 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
July 31		   Nine months
ended
July 31		  
 
   2014   2013   2014   2013  
 
   In millions, except per share amounts
  

Numerator:

                          

Net earnings(1)

   $ 985   $ 1,390   $ 3,683   $ 3,699  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Denominator:

                          

Weighted-average shares used to compute basic net EPS

     1,870     1,929     1,889     1,939  

Dilutive effect of employee stock plans

     29     19     24     13  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Weighted-average shares used to compute diluted net EPS

     1,899     1,948     1,913     1,952  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Net earnings per share:

                          

Basic

   $ 0.53   $ 0.72   $ 1.95   $ 1.91  

Diluted

   $ 0.52   $ 0.71   $ 1.93   $ 1.89  
(1)
Net earnings available to participating securities were not significant for the three and nine months ended July 31, 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 the three and nine months ended July 31, 2014, HP excluded options to purchase 18 million shares and 19 million shares, respectively, from the calculation of diluted net EPS compared to 43 million shares and 52 million shares for the three and nine months ended July 31, 2013, respectively. HP also excluded options to purchase an additional 0.4 million shares and 8 million shares for the three and nine months ended July 31, 2014, respectively, from the calculation of diluted net EPS compared to an additional 8 million shares and 2 million shares for the three and nine months ended July 31, 2013, respectively, as their combined exercise price, unrecognized compensation and excess tax benefits were greater than the average market price for HP's stock in each of those periods.