HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three months ended
-----------------------------------
January 31, October 31, January 31,
2008 2007 2007
----------- ----------- -----------
Numerator:
Net earnings $ 2,133 $ 2,164 $1,547
Adjustment for interest
expense on zero-coupon
subordinated convertible
notes, net of taxes 2 2 2
----------- ----------- -----------
Net earnings, adjusted $ 2,135 $ 2,166 $1,549
=========== =========== ===========
Denominator:
Weighted-average shares used
to compute basic EPS 2,560 2,576 2,705
Effect of dilutive
securities:
Dilution from employee
stock plans 87 94 88
Zero-coupon subordinated
convertible notes 8 8 8
----------- ----------- -----------
Dilutive potential common
shares 95 102 96
----------- ----------- -----------
Weighted-average shares used
to compute diluted EPS 2,655 2,678 2,801
=========== =========== ===========
Net earnings per share:
Basic(a) $ 0.83 $ 0.84 $ 0.57
Diluted(b) $ 0.80 $ 0.81 $ 0.55
(a) HP's basic earnings per share was calculated based on net earnings
and the weighted-average number of shares outstanding during the
reporting period.
(b) The diluted earnings per share included additional dilution from
potential issuance of common stock, such as stock issuable
pursuant to exercise of stock options and conversion of debt,
except when such issuances would be antidilutive.
HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
CALCULATION OF NON-GAAP NET EARNINGS PER SHARE
(Unaudited)
(In millions except per share amounts)
Three months ended
-----------------------------------
January 31, October 31, January 31,
2008 2007 2007
----------- ----------- -----------
Numerator:
Non-GAAP net earnings $ 2,291 $ 2,296 $1,826
Adjustment for interest
expense on zero-coupon
subordinated convertible
notes, net of taxes 2 2 2
----------- ----------- -----------
Non-GAAP net earnings,
adjusted $ 2,293 $ 2,298 $1,828
=========== =========== ===========
Denominator:
Weighted-average shares used
to compute basic EPS 2,560 2,576 2,705
Effect of dilutive
securities:
Dilution from employee
stock plans 87 94 88
Zero-coupon subordinated
convertible notes 8 8 8
----------- ----------- -----------
Dilutive potential common
shares 95 102 96
----------- ----------- -----------
Weighted-average shares used
to compute diluted EPS 2,655 2,678 2,801
=========== =========== ===========
Non-GAAP net earnings per share:
Basic(a) $ 0.89 $ 0.89 $ 0.68
Diluted(b) $ 0.86 $ 0.86 $ 0.65
(a) HP's basic non-GAAP earnings per share was calculated based on
non-GAAP net earnings and the weighted-average number of shares
outstanding during the reporting period.
(b) HP's diluted non-GAAP earnings per share included additional
dilution from potential issuance of common stock, such as stock
issuable pursuant to exercise of stock options and conversion of
debt, except when such issuances would be antidilutive.
