Net Earnings Per Share

12 Months Ended

Oct. 31, 2015

Net Earnings Per Share

Net Earnings Per Share

Note 15: 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:

	For the fiscal years ended October 31
	2015		2014		2013
	In millions, except per share amounts
Numerator:
Net earnings(1)	$	4,554	$	5,013	$	5,113
Denominator:
Weighted-average shares used to compute basic net EPS		1,814		1,882		1,934
Dilutive effect of employee stock plans		22		30		16
Weighted-average shares used to compute diluted net EPS		1,836		1,912		1,950
Net earnings per share:
Basic	$	2.51	$	2.66	$	2.64
Diluted	$	2.48	$	2.62	$	2.62
Anti-dilutive weighted-average options(2)		23		26		52

(1)

HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities. As of October 31, 2015, there were no restricted stock awards outstanding. For fiscal 2014 and 2013, the net earnings allocated to participating securities were not significant.

(2)

HP excludes options and restricted stock units 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. The assumed proceeds of a restricted stock unit include the sum of its average unrecognized compensation cost and excess tax benefits.