Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2019

The following is a reconciliation of basic and diluted earnings per share for the respective periods:



	Three Months Ended March 31,
In millions, except per share amounts	2019			2018
Numerator for earnings per share calculation:
Net income	$	1,427		$	998
Income allocated to participating securities	(2		)	(2		)
Net income attributable to noncontrolling interest	(6		)	—
Net income attributable to CVS Health	$	1,419		$	996

Denominator for earnings per share calculation:
Weighted average shares, basic	1,298			1,016
Effect of dilutive securities	4			3
Weighted average shares, diluted	1,302			1,019

Earnings per share:
Basic	$	1.09		$	0.98
Diluted	$	1.09		$	0.98

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Earnings per share is computed using the two-class method. Stock appreciation rights and options to purchase 15.3 million shares of common stock were outstanding, but were excluded from the calculation of diluted earnings per share, for the three months ended March 31, 2019 because their exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. For the same reason, options to purchase 13.2 million shares of common stock were outstanding, but were excluded from the calculation of diluted earnings per share, for the three months ended March 31, 2018.