Earnings per Share

9 Months Ended

Jun. 30, 2022

On April 1, 2022, the date of the Separation, 57,797,841 shares of embecta's common stock, par value $0.01 per share, were distributed to BD shareholders of record as of March 22, 2022, the record date of the transaction. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation.

In connection with the Separation, and in accordance with the EMA, embecta's employees with outstanding former BD share-based awards received replacement share-based awards under the Plan. The ratio used to convert the BD share-based awards was designed to preserve the aggregate intrinsic value of the award immediately after the Separation when compared to the aggregate intrinsic value of the award immediately prior to Separation (see Note 8 for additional details).

The calculation of basic and diluted earnings per common share for the three and nine months ended June 30, 2022 and 2021 was as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
($ in millions and shares in thousands, except per share amounts)	2022		2021		2022		2021
Net Income attributable to embecta	$	62.4	$	104.7	$	240.8	$	317.9

Basic weighted average number of shares outstanding	57,802		57,798		57,799		57,798
Stock awards and equity units (share equivalent)	405		—		405		—
Diluted weighted average shares outstanding	58,207		57,798		58,204		57,798

Earnings per common share - Basic	$	1.08	$	1.81	$	4.17	$	5.50
Earnings per common share - Diluted	$	1.07	$	1.81	$	4.14	$	5.50

For periods prior to the Separation, it is assumed that there were no dilutive equity instruments as there were no equity awards of embecta outstanding prior to the Separation.

For periods subsequent to the Separation, diluted earnings per share is computed by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards, when the effect of the potential exercise would be anti-dilutive.