NOTE 6. BASIC AND DILUTED EARNINGS PER SHARE

Diluted earnings attributable to shareholders per share is computed using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential shares represent outstanding stock options, including purchase options under the Company's employee stock purchase plan and unvested RSUs. Basic earnings attributable to shareholders per share is calculated using the weighted average number of common shares outstanding without taking into consideration dilutive potential common shares outstanding.

The following table reconciles the numerator and the denominator of the basic and diluted per share computations for earnings attributable to shareholders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

   Net earnings attributable to shareholders

 

$

810,332

 

 

$

810,073

 

 

$

752,883

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

   Weighted-average basic shares outstanding

 

 

135,810

 

 

 

140,992

 

 

 

149,141

 

 

   Effect of dilutive share-based awards

 

 

439

 

 

 

730

 

 

 

1,045

 

 

   Weighted-average diluted shares

 

$

136,249

 

 

$

141,722

 

 

$

150,186

 

 

Basic earnings per share

 

$

5.97

 

 

$

5.75

 

 

$

5.05

 

 

Diluted earnings per share

 

$

5.95

 

 

$

5.72

 

 

$

5.01

 

Potential common shares of 308, 696 and 771 were excluded from the computation of diluted earnings per share because the effect would have been antidilutive in 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 21, 2025
2023Feb 23, 2024
2022Mar 1, 2023
2021Mar 15, 2022
2020Feb 19, 2021
2019Feb 21, 2020
2018Feb 22, 2019
2017Feb 23, 2018
2015Feb 25, 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.