EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

EARNINGS PER SHAREThe numerator for both basic and diluted earnings per share (EPS) is net income (loss) 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 net income (loss) attributable to Baxter stockholders.


	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Income (loss) from continuing operations	$	(193)	$	185	$	(193)	$	193
Less: Net income attributable to noncontrolling interests	2		3		3		5
Income (loss) from continuing operations attributable to Baxter stockholders	(195)		182		(196)		188
Income from discontinued operations	54		70		99		135
Net income (loss) attributable to Baxter stockholders	$	(141)	$	252	$	(97)	$	323

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


	Three months ended June 30,		Six months ended June 30,
(in millions)	2023	2022	2023	2022
Basic shares	506	504	506	503
Effect of dilutive securities	—	4	—	5
Diluted shares	506	508	506	508

Basic and diluted shares are the same for the three and six months ended June 30, 2023 due to our net losses for the period. The effect of dilutive securities for the three and six months ended June 30, 2022 includes unexercised stock options, unvested RSUs and contingently issuable shares related to granted PSUs.

Diluted EPS excludes 27 million and 25 million shares issuable under equity awards for the three and six months ended June 30, 2023, respectively, and 12 million and 8 million shares issuable under equity awards for the three and six months ended June 30, 2022, 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.