Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2022

Earnings (loss) per share is computed using the treasury stock method. For periods in which the Company reports net income, diluted earnings per share is determined using the weighted average number of common and dilutive common equivalent shares outstanding during the period, unless the effect is antidilutive. Stock options and stock appreciation rights to purchase 4 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, 2022 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 options and stock appreciation rights 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. In addition, due to the net loss attributable to CVS Health in the three months ended September 30, 2022, 8 million potentially dilutive common equivalent shares were excluded from the calculation of diluted earnings per share, as the impact of these shares were antidilutive for that period.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions, except per share amounts	2022		2021		2022		2021
Numerator for earnings (loss) per share calculation:



Net income (loss) attributable to CVS Health	$	(3,416)	$	1,598	$	1,847	$	6,604

Denominator for earnings (loss) per share calculation:
Weighted average shares, basic	1,315		1,321		1,313		1,318
Restricted stock units and performance stock units	—		4		6		5
Stock options and stock appreciation rights	—		4		5		3
Weighted average shares, diluted	1,315		1,329		1,324		1,326

Earnings (loss) per share:
Basic	$	(2.60)	$	1.21	$	1.41	$	5.01
Diluted	$	(2.60)	$	1.20	$	1.40	$	4.98