EARNINGS PER SHARE
The two-class method is utilized for the computation of the Company’s EPS. The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends that are paid in cash. The Company’s RSAs are participating securities. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period.
The following table sets forth the calculation of EPS on total net income (in millions, except share and per share data):
 Years Ended December 31,
 202520242023
Weighted average basic common shares outstanding12,713,382 13,192,518 13,681,660 
Dilutive effect of stock-based awards and employee stock purchases23,850 57,366 53,139 
Weighted average dilutive common shares outstanding12,737,232 13,249,884 13,734,799 
Basic:
Net income$325.2 $498.1 $601.6 
Less: Earnings allocated to participating securities from continuing operations3.7 10.5 14.8 
Less: Earnings allocated to participating securities from discontinued operations— — — 
Net income available to basic common shares$321.5 $487.6 $586.8 
Basic earnings per common share$25.29 $36.96 $42.89 
Diluted:
Net income$325.2 $498.1 $601.6 
Less: Earnings allocated to participating securities from continuing operations3.6 10.4 14.8 
Less: Earnings allocated to participating securities from discontinued operations— — — 
Net income available to diluted common shares$321.5 $487.7 $586.9 
Diluted earnings per common share$25.24 $36.81 $42.73 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 14, 2024
2022Feb 16, 2023
2021Feb 23, 2022
2017Feb 20, 2018
2016Feb 17, 2017
2015Feb 17, 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.