|HP INC. AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(In millions, except per share amounts)
|Twelve months ended|
|October 31, 2019||October 31, 2018|
|GAAP net earnings||$||3,152||$||5,327|
|Non-GAAP net earnings||$||3,409||$||3,306|
|Weighted-average shares used to compute basic net earnings per share||1,515||1,615|
|Dilutive effect of employee stock plans(a)||9||19|
|Weighted-average shares used to compute diluted net earnings per share||1,524||1,634|
|GAAP diluted net earnings per share||$||2.07||$||3.26|
|Non-GAAP diluted net earnings per share||$||2.24||$||2.02|
(a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards.
Use of non-GAAP financial measures
To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt). HP also provides forecasts of non-GAAP diluted net EPS and free cash flow.