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 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
	2018		2017		2016
	In millions, except per share amounts
Numerator:
Net earnings from continuing operations	$	5,327	$	2,526	$	2,666
Net loss from discontinued operations	—		—		(170		)
Net earnings	$	5,327	$	2,526	$	2,496
Denominator:
Weighted-average shares used to compute basic net EPS	1,615		1,688		1,730
Dilutive effect of employee stock plans	19		14		13
Weighted-average shares used to compute diluted net EPS	1,634		1,702		1,743
Basic net earnings per share:
Continuing operations	$	3.30	$	1.50	$	1.54
Discontinued operations	—		—		(0.10		)
Basic net earnings per share	$	3.30	$	1.50	$	1.44
Diluted net earnings per share:
Continuing operations	$	3.26	$	1.48	$	1.53
Discontinued operations	—		—		(0.10		)
Diluted net earnings per share	$	3.26	$	1.48	$	1.43
Anti-dilutive weighted-average options⁽¹⁾	—		1		13

⁽¹⁾

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, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.