EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

The 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 income from continuing operations to net income attributable to Baxter stockholders.


	Three months ended March 31,
(in millions)	2024		2023
Income from continuing operations	$	39	$	—
Less: Net income attributable to noncontrolling interests	2		1
Income (loss) from continuing operations attributable to Baxter stockholders	37		(1)
Income from discontinued operations	—		45
Net income attributable to Baxter stockholders	$	37	$	44

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


	Three months ended March 31,
(in millions)	2024	2023
Basic shares	508	505
Effect of dilutive securities	2	—
Diluted shares	510	505

Basic and diluted shares are the same for the three months ended March 31, 2023 due to our loss from continuing operations attributable to Baxter stockholders. 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 16 million and 24 million shares issuable under equity awards for the three months ended March 31, 2024, and 2023, respectively, because their inclusion would have had an anti-dilutive effect on diluted EPS.