include direct employer benefit payments.

Note 13. Earnings Per Share Attributable to Common Shareholders

Basic and diluted earnings per share (EPS) were computed using the following data:

	Three Months Ended				Six Months Ended
(in millions)	July 3, 2011		July 4, 2010		July 3, 2011		July 4, 2010

EPS Numerator––Basic:
Income from continuing operations	$	2,588	$	2,454	$	4,812	$	4,468
Less: Net income attributable to noncontrolling interests		8		10		20		19
Income from continuing operations attributable to Pfizer Inc.		2,580		2,444		4,792		4,449
Less: Preferred stock dividends––net of tax		––		1		1		1
Income from continuing operations attributable to Pfizer Inc. common shareholders		2,580		2,443		4,791		4,448
Discontinued operations––net of tax		30		31		40		52
Net income attributable to Pfizer Inc. common shareholders	$	2,610	$	2,474	$	4,831	$	4,500

EPS Numerator––Diluted:
Income from continuing operations attributable to Pfizer Inc. common shareholders and assumed conversions	$	2,580	$	2,444	$	4,792	$	4,449
Discontinued operations––net of tax		30		31		40		52
Net income attributable to Pfizer Inc. common shareholders and assumed conversions	$	2,610	$	2,475	$	4,832	$	4,501

EPS Denominator:
Weighted-average number of common shares outstanding––Basic		7,875		8,046		7,929		8,053
Common-share equivalents: stock options, stock issuable under employee compensation plans and convertible preferred stock		60		26		51		32
Weighted-average number of common shares outstanding––Diluted		7,935		8,072		7,980		8,085

Stock options that had exercise prices greater than the average market price of our common stock issuable under employee compensation plans(a)		280		427		281		427

(a)	These common stock equivalents were outstanding during the three and six months ended July 3, 2011 and July 4, 2010, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.