Stockholders’ Equity and Earnings Per Share
The following table presents the basic and diluted EPS calculations for the years ended December 31, 2025, 2024 and 2023. For more information on the calculation of EPS, see Note 1Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements in this Form 10-K.
Year Ended December 31,
($ and shares in thousands, except per share data)202520242023
Basic:
Net income$1,325,188 $1,165,586 $1,161,161 
Basic weighted-average number of shares outstanding
138,342 
(1)
138,898 141,164 
Basic EPS$9.58 $8.39 $8.23 
Diluted:
Net income$1,325,188 $1,165,586 $1,161,161 
Less: Fair value changes of liability-classified equity contracts, net of tax (2)
(996)— — 
Net income, diluted
$1,324,192 $1,165,586 $1,161,161 
Basic weighted-average number of shares outstanding
138,342 
(1)
138,898 141,164 
Add: Dilutive impact of unvested RSUs and liability-classified equity contracts that are share-settled788 1,060 738 
Diluted weighted-average number of shares outstanding139,130 139,958 141,902 
Diluted EPS$9.52 $8.33 $8.18 
(1)Includes retirement-eligible employees’ awards.
(2)Applied blended statutory tax rate of 28.02% for the year ended December 31, 2025.

Approximately nine thousand, six thousand and 283 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computation for the years ended December 31, 2025, 2024 and 2023, respectively.

Stock Repurchase Program — On January 22, 2025, the Company’s Board of Directors authorized the repurchase of up to $300 million of its common stock. The Company repurchased $115 million and $144 million of its common stock in the years ended December 31, 2025 and 2024, respectively. All repurchases were made on the open market at currently prevailing prices.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2019Feb 27, 2020

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.