Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings per share is computed using the two-class method. Stock appreciation rights and options to purchase 8 million shares of common stock were outstanding, but were excluded from the calculation of diluted earnings per share in each of the three and nine-month periods ended September 30, 2021, 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, stock appreciation rights and options to purchase 17 million and 16 million shares of common stock were outstanding, but were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2020, respectively.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2021		2020		2021		2020
Numerator for earnings per share calculation:



Net income attributable to CVS Health	$	1,598	$	1,224	$	6,604	$	6,206

Denominator for earnings per share calculation:
Weighted average shares, basic	1,321		1,310		1,318		1,308
Effect of dilutive securities	8		5		8		6
Weighted average shares, diluted	1,329		1,315		1,326		1,314

Earnings per share:
Basic	$	1.21	$	0.93	$	5.01	$	4.74
Diluted	$	1.20	$	0.93	$	4.98	$	4.72