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Earnings Per Share
 3 Months Ended
Mar. 31, 2017
Earnings Per Share  
Earnings Per Share

Note 6 – Earnings Per Share

 

Earnings per share is computed using the two-class method. Options to purchase 7.8 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share, for the three months ended March 31, 2017, because the exercise prices of the options 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 approximately 3.6 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share for the three months ended March 31, 2016.

 

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

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

In millions, except per share amounts

    

2017

    

2016

Numerator for earnings per share calculation:

 

 

 

 

 

 

Income from continuing operations

 

$

962

 

$

1,147

Income allocated to participating securities

 

 

(4)

 

 

(6)

Net income attributable to noncontrolling interest

 

 

(1)

 

 

(1)

Income from continuing operations attributable to CVS Health

 

$

957

 

$

1,140

 

 

 

 

 

 

 

Denominator for earnings per share calculation:

 

 

 

 

 

 

Weighted average shares, basic

 

 

1,030

 

 

1,092

Effect of dilutive securities

 

 

 5

 

 

 7

Weighted average shares, diluted

 

 

1,035

 

 

1,099

 

 

 

 

 

 

 

Earnings per share from continuing operations:

 

 

 

 

 

 

Basic

 

$

0.93

 

$

1.04

Diluted

 

$

0.92

 

$

1.04