22. Earnings Per Share

The computation of basic and diluted earnings per share were as follows (dollars and shares in millions):

 

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

735

 

 

$

646

 

 

$

488

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average common stock

 

 

76.6

 

 

 

80.2

 

 

 

85.0

 

Added: Weighted average share awards

 

 

0.3

 

 

 

0.2

 

 

 

0.2

 

Diluted weighted average common stock

 

 

76.9

 

 

 

80.4

 

 

 

85.2

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share - basic

 

$

9.59

 

 

$

8.06

 

 

$

5.74

 

Net earnings per share - diluted

 

$

9.55

 

 

$

8.04

 

 

$

5.72

 

 

Anti-dilutive shares outstanding for the years ended December 31, 2025, 2024 and 2023 were immaterial.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 20, 2024
2022Feb 16, 2023
2021Feb 22, 2022
2018Feb 21, 2019

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.