Earnings Per Share

12 Months Ended

Oct. 31, 2020

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 units, stock options, performance-based awards and shares purchased under the 2011 employee stock purchase plan.

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


	For the fiscal years ended October 31
	2020		2019		2018
	In millions, except per share amounts
Numerator:


Net earnings	$	2,844	$	3,152	$	5,327
Denominator:
Weighted-average shares used to compute basic net EPS	1,413		1,515		1,615
Dilutive effect of employee stock plans	7		9		19
Weighted-average shares used to compute diluted net EPS	1,420		1,524		1,634
Net earnings per share:


Basic	$	2.01	$	2.08	$	3.30



Diluted	$	2.00	$	2.07	$	3.26
Anti-dilutive weighted-average stock-based compensation awards(1)	13		7		—

(1)HP excludes from the calculation of diluted net EPS stock options and restricted stock units where the assumed proceeds exceed the average market price, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.