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Net Earnings Per Share
 3 Months Ended
Jan. 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, stock options and performance-based restricted units.

        The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

 
   Three months
ended January 31		  
 
   2014   2013  
 
   In millions, except
per share amounts
  

Numerator:

              

Net earnings(1)

   $ 1,425   $ 1,232  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Denominator:

              

Weighted-average shares used to compute basic net EPS

     1,907     1,953  

Dilutive effect of employee stock plans

     28     3  
           
​ ​ ​ ​ ​ ​ ​ ​

Weighted-average shares used to compute diluted net EPS

     1,935     1,956  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Net earnings per share:

              

Basic

   $ 0.75   $ 0.63  

Diluted

   $ 0.74   $ 0.63  
(1)
Net earnings available to participating securities were not significant for the three months ended January 31, 2014 and 2013. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security.

        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. In the three months ended January 31, 2014 and 2013, HP excluded from the calculation of diluted net EPS options to purchase 30 million shares and 74 million shares, respectively. In addition, HP also excluded from the calculation of diluted net EPS options to purchase an additional 7 million shares and 12 million shares, respectively, as their combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price for HP's stock.