Earnings per Share

3 Months Ended

Dec. 31, 2022

On April 1, 2022, the date of the Separation, 57,012,925 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 distribution. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation.

The calculation of basic and diluted earnings per common share for the three months ended December 31, 2022 and 2022 was as follows:


	Three Months Ended December 31,
($ in millions and shares in thousands, except per share amounts)	2022		2021
Net Income attributable to Embecta	$	35.2	$	98.8

Basic weighted average number of shares outstanding	57,113		57,013
Stock awards and equity units (share equivalent)	371		—
Diluted weighted average shares outstanding	57,484		57,013

Earnings per common share - Basic	$	0.62	$	1.73
Earnings per common share - Diluted	$	0.61	$	1.73

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. For the three months ended December 31, 2022, 2.0 million of dilutive share equivalents issuable under stock-based compensation plans were excluded from the diluted shares outstanding calculation because the result would have been antidilutive.