NOTE 21. EARNINGS PER SHARE

The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data):

 

 

 

Years ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net income

 

$

623

 

 

$

731

 

 

$

673

 

Weighted average shares of common stock outstanding

 

 

84

 

 

 

87

 

 

 

90

 

Dilutive effect of stock-based awards

 

 

1

 

 

 

1

 

 

 

1

 

Diluted weighted average shares of common stock outstanding

 

 

85

 

 

 

88

 

 

 

91

 

Basic earnings per share attributable to common stockholders

 

$

7.42

 

 

$

8.40

 

 

$

7.48

 

Diluted earnings per share attributable to common
   stockholders

 

$

7.33

 

 

$

8.31

 

 

$

7.40

 

The dilutive impact of stock-based compensation is calculated using the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. During each of the years ended December 31, 2025, 2024 and 2023, there were no outstanding stock options that were anti-dilutive and excluded from the diluted EPS calculation. Basic and diluted EPS for the full-year are calculated using the weighted average shares of common stock outstanding during the year while quarterly basic and diluted EPS are calculated using the weighted average shares of common stock outstanding during the quarter; therefore, the sum of each quarter's EPS may not equal full-year EPS.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 13, 2025
2023Feb 14, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 27, 2020
2018Feb 26, 2019
2017Feb 15, 2018
2016Feb 24, 2017
2015Feb 19, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.