AVIENT CORP Earnings Per Share Disclosure
(In millions) | 2016 | 2015 | 2014 | ||||||
Weighted-average shares — basic: | 83.9 | 87.8 | 92.3 | ||||||
Plus dilutive impact of share-based compensation | 0.7 | 0.9 | 1.2 | ||||||
Weighted-average shares — diluted: | 84.6 | 88.7 | 93.5 | ||||||
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.