Earnings Per Share

6 Months Ended

Jun. 30, 2017

Note 8 – Earnings Per Share

Earnings per share is computed using the two-class method. Options to purchase 11.0 million and 9.4 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share, for the three and six months ended June 30, 2017, respectively, 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 7.8 million and 5.7 million shares of common stock were outstanding, but were not included in the calculation of diluted earnings per share for the three and six months ended June 30, 2016, respectively.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
In millions, except per share amounts	2017		2016		2017		2016
Numerator for earnings per share calculation:
Income from continuing operations	$	1,097	$	924	$	2,059	$	2,071
Income allocated to participating securities		(3)		(4)		(8)		(10)
Net income attributable to noncontrolling interest		—		—		(1)		(1)
Income from continuing operations attributable to CVS Health	$	1,094	$	920	$	2,050	$	2,060

Denominator for earnings per share calculation:
Weighted average shares, basic		1,019		1,070		1,024		1,081
Effect of dilutive securities		5		5		5		6
Weighted average shares, diluted		1,024		1,075		1,029		1,087

Earnings per share from continuing operations:
Basic	$	1.07	$	0.86	$	2.00	$	1.91
Diluted	$	1.07	$	0.86	$	1.99	$	1.90