3. EARNINGS PER SHARE
The following table presents the calculation of our basic and diluted earnings per share:
For the Year Ended December 31,
202520242023
(dollars in millions, shares in thousands (except per share data))   
Calculation of Basic Earnings Per Share:
Net Income$140.3 $118.6 $87.2 
Weighted average shares outstanding (1)
23,389 22,469 18,371 
Basic Earnings Per Share
$6.00 $5.28 $4.75 
Calculation of Diluted Earnings Per Share:
Reconciliation of Denominator:
Weighted average shares outstanding — Basic (1)
23,389 22,469 18,371 
Effect of dilutive securities — Share-based compensation99 62 64 
Adjusted denominator — Diluted (1)
23,488 22,531 18,435 
Diluted Earnings Per Share
$5.97 $5.26 $4.73 
(1) Weighted average shares reflect the impact of 4.4 million common shares issued in November 2023 in connection with the acquisition of FCG. See Notes 4 and 14 for additional details on the acquisition and related equity offering.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2022Feb 22, 2023
2019Feb 26, 2020
2018Feb 27, 2019
2017Mar 1, 2018
2016Feb 28, 2017
2015Feb 29, 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.