EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHAREThe numerator for both basic and diluted earnings per share (EPS) is net income attributable to Baxter stockholders. The denominator for basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, RSUs and PSUs is reflected in the denominator for diluted EPS using the treasury stock method.

The following table is a reconciliation of basic shares to diluted shares.


	Three months ended June 30,		Six months ended June 30,
(in millions)	2022	2021	2022	2021
Basic shares	504	503	503	504
Effect of dilutive securities	4	6	5	6
Diluted shares	508	509	508	510

The effect of dilutive securities includes unexercised stock options, unvested RSUs and contingently issuable shares related to granted PSUs. The computation of diluted EPS excludes 12 million and 8 million equity awards for the three and six months ended June 30, 2022, respectively, and 7 million equity awards for the three and six months ended June 30, 2021, respectively, because their inclusion would have had an anti-dilutive effect on diluted EPS. Refer to Note 7 for additional information regarding items impacting basic and diluted shares.