Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings per share is computed using the two-class method. Stock appreciation rights and options to purchase 12 million and 15 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, 2020 and 2019, respectively, because their exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive.

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	2020			2019
Numerator for earnings per share calculation:
Net income	$	2,012		$	1,427
Income allocated to participating securities	—			(2		)
Net income attributable to noncontrolling interests	(5		)	(6		)
Net income attributable to CVS Health	$	2,007		$	1,419

Denominator for earnings per share calculation:
Weighted average shares, basic	1,306			1,298
Effect of dilutive securities	6			4
Weighted average shares, diluted	1,312			1,302

Earnings per share:
Basic	$	1.54		$	1.09
Diluted	$	1.53		$	1.09