EARNINGS PER SHARE
The following table sets forth the calculation of basic and diluted earnings per share (in millions, except per share data):
 
Year Ended December 31,
 
2025
2024
2023
Numerator:
 
 
 
Net income
$
$
139 
$
375 
Denominator:
Denominator for basic earnings per share — weighted-average outstanding shares
416.8 
406.3 
405.3 
Effect of dilutive securities:
Stock options, restricted stock awards and restricted stock units
3.9 
1.5 
1.6 
Denominator for diluted earnings per share — weighted-average outstanding shares
420.7 
407.8 
406.9 
Earnings per share — basic
$
0.02 
$
0.34 
$
0.92 
Earnings per share — diluted
$
0.02 
$
0.34 
$
0.92 
The following table summarizes the shares underlying the unvested performance-based restricted stock and anti-dilutive securities excluded from the basic and diluted earnings per share calculations (in millions):
 
Year Ended December 31,
 
2025
2024
2023
Performance-based restricted stock awards
0.1 
0.1 
0.2 
Anti-dilutive securities
1.7 
0.8 
0.7 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025

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.