10. Earnings (Loss) per Common Share

Basic earnings (loss) per common share (EPS) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations on a GAAP basis follows.

 

 

Years Ended December 31,

 

(In millions, except per share data)

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(80

)

 

$

131

 

 

$

228

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares used to compute basic EPS

 

 

99

 

 

 

109

 

 

 

122

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Dilutive effect of restricted stock, restricted
   stock units, performance stock units, and
   Employee Stock Purchase Plan (ESPP)
(1)

 

 

 

 

 

2

 

 

 

1

 

Dilutive potential common shares(2)

 

 

 

 

 

2

 

 

 

1

 

Weighted average shares used to compute
   diluted EPS

 

 

99

 

 

 

111

 

 

 

123

 

Basic earnings (loss) per common share

 

$

(.81

)

 

$

1.20

 

 

$

1.87

 

Diluted earnings (loss) per common share

 

$

(.81

)

 

$

1.18

 

 

$

1.85

 

 

(1)
Includes the potential dilutive effect of additional common shares that are issuable upon the vesting of restricted stock, restricted stock units and performance stock units and the outstanding commitment to issue shares under applicable ESPPs, determined by the treasury stock method.
(2)
For the years ended December 31, 2025, 2024 and 2023, there were 2 million, 0 and 0 shares outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 25, 2022

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.