HP INC. AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts) | |||||||
Twelve months ended | |||||||
October 31, 2019 | October 31, 2018 | ||||||
Numerator: | |||||||
GAAP net earnings | $ | 3,152 | $ | 5,327 | |||
Non-GAAP net earnings | $ | 3,409 | $ | 3,306 | |||
Denominator: | |||||||
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.