Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings per share is computed using the two-class method. SARs and options to purchase 7 million, 15 million, and 17 million shares of common stock were outstanding, but were excluded from the calculation of diluted earnings per share for the years ended December 31, 2021, 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 from continuing operations for the years ended December 31, 2021, 2020 and 2019:


In millions, except per share amounts	2021		2020		2019
Numerator for earnings per share calculation:
Income from continuing operations	$	7,898	$	7,201	$	6,631
Income allocated to participating securities	—		—		(5)
Net (income) loss attributable to noncontrolling interests	12		(13)		3
Income from continuing operations attributable to CVS Health	$	7,910	$	7,188	$	6,629

Denominator for earnings per share calculation:
Weighted average shares, basic	1,319		1,309		1,301
Effect of dilutive securities	10		5		4
Weighted average shares, diluted	1,329		1,314		1,305

Earnings per share from continuing operations:
Basic	$	6.00	$	5.49	$	5.10
Diluted	$	5.95	$	5.47	$	5.08