Earnings Per Share

On February 7, 2019, Henry Schein distributed approximately 71 million shares of Covetrus common stock to its shareholders. The computation of basic earnings per common share (“EPS”) for periods prior to the Separation was calculated using the shares distributed by Henry Schein on February 7, 2019. The weighted average number of shares outstanding for diluted EPS for the periods prior to the Separation also include approximately 1 million of diluted common share equivalents for restricted stock and restricted stock units as these share-based awards were previously issued by Henry Schein and outstanding at the time of the Separation and were assumed by Covetrus following the Separation.

Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. In addition, the shares of common stock issuable pursuant to restricted stock awards, restricted stock units, and stock options outstanding under our 2019 Omnibus Incentive Compensation Plan (the “Plan”) are included in the diluted EPS calculation to the extent they are dilutive.

The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computation for net income (loss) per share:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions, except per share amounts)	2019			2018		2019			2018
Numerator:
Net (loss) income attributable to Covetrus	$	(906	)	$	16	$	(929	)	$	67
Denominator:
Basic
Weighted average common shares outstanding	112			71		106			71
Diluted shares
Effect of dilutive shares ^(a)	—			1		—			1
Diluted shares	112			72		106			72
(Loss) earnings per share attributable to Covetrus:
Basic	$	(8.09	)	$	0.22	$	(8.76	)	$	0.94
Diluted	$	(8.09	)	$	0.22	$	(8.76	)	$	0.94

(a) Shares from share-based awards are not included for periods with a net loss because they would be anti-dilutive