Net Earnings Per Share

6 Months Ended

Apr. 30, 2016

Net Earnings Per Share

Net Earnings Per Share

Note 13: 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 employee stock purchase plan.

        A reconciliation of the number of shares used for basic and diluted net EPS calculations were as follows:

	Three months ended April 30					Six months ended April 30
	2016			2015		2016			2015
	In millions, except per share amounts
Numerator:
Net earnings from continuing operations	$	660		$	733	$	1,310		$	1,503
Net (loss) earnings from discontinued operations		(31	)		278		(89	)		874
Net earnings(1)	$	629		$	1,011	$	1,221		$	2,377
Denominator:
Weighted-average shares used to compute basic net EPS		1,720			1,814		1,748			1,824
Dilutive effect of employee stock plans		11			22		10			24
Weighted-average shares used to compute diluted net EPS		1,731			1,836		1,758			1,848
Basic net earnings (loss) per share:
Continuing operations	$	0.38		$	0.41	$	0.75		$	0.82
Discontinued operations		(0.01	)		0.15		(0.05	)		0.48
Basic net earnings per share	$	0.37		$	0.56	$	0.70		$	1.30
Diluted net earnings (loss) per share:
Continuing operations	$	0.38		$	0.40	$	0.75		$	0.81
Discontinued operations		(0.02	)		0.15		(0.06	)		0.48
Diluted net earnings per share	$	0.36		$	0.55	$	0.69		$	1.29
Anti-dilutive weighted average stock-based compensation awards(2)		27			9		25			13

(1)

HP considers restricted stock that provides the holder a non-forfeitable right to receive dividends to be participating securities. There were no participating securities for net earnings allocation in any period presented.

(2)

HP excludes stock 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 a stock 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.