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Net Earnings Per Share
 12 Months Ended
Oct. 31, 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:

 

 

 

For the fiscal years ended
October 31

 

 

 

2015

 

2014

 

2013

 

 

 

In millions, except per share
amounts

 

Numerator:

 

 

 

 

 

 

 

Earnings from continuing operations

 

$
3,718 

 

$
2,924 

 

$
2,460 

 

Earnings from discontinued operations

 
836 

 
2,089 

 
2,653 

 

 

 

 

 

 

 

 

 

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 

 

 

 

 

 

 

 

 

 

Basic net earnings per share:

 

 

 

 

 

 

 

Continuing operations

 

$
2.05 

 

$
1.55 

 

$
1.27 

 

Discontinued operations

 
0.46 

 
1.11 

 
1.37 

 

 

 

 

 

 

 

 

 

Basic net earnings per share

 

$
2.51 

 

$
2.66 

 

$
2.64 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per share:

 

 

 

 

 

 

 

Continuing operations

 

$
2.02 

 

$
1.53 

 

$
1.26 

 

Discontinued operations

 
0.46 

 
1.09 

 
1.36 

 

 

 

 

 

 

 

 

 

Diluted net earnings per share

 

$
2.48 

 

$
2.62 

 

$
2.62 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive weighted-average options(2)

 
23 

 
26 

 
52 

 

 

 

(1)

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

 

(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.