Net Earnings Per Share

6 Months Ended

Apr. 30, 2015

Net Earnings Per Share

Net Earnings Per Share

Note 14: Net Earnings Per Share

        HP calculates basic net 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, performance-based awards and shares purchased under the 2011 ESPP.

        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
	2015		2014		2015		2014
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	1,011	$	1,273	$	2,377	$	2,698
Denominator:
Weighted-average shares used to compute basic net EPS		1,814		1,890		1,824		1,898
Dilutive effect of employee stock plans		22		26		24		24
Weighted-average shares used to compute diluted net EPS		1,836		1,916		1,848		1,922
Net earnings per share:
Basic	$	0.56	$	0.67	$	1.30	$	1.42
Diluted	$	0.55	$	0.66	$	1.29	$	1.40
Anti-dilutive weighted average options(2)		9		26		13		27

(1)	HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities. As of April 30, 2015, there were no restricted stock awards outstanding. For the three and six months ended April 30, 2014, the net earnings allocated to participating securities were not significant.
(2)	HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits.