4. Earnings Per Share:

Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share are computed by dividing net income by the sum of the weighted-average number of shares and the number of equivalent shares assumed outstanding, if dilutive, under our stock-based compensation plans.

The computations of basic and diluted earnings per share were as follows (in millions, except per share data):
 
 For the Years Ended December 31,
 20252024
As Adjusted
2023
As Adjusted
Net income$805.8 $811.1 $591.2 
Weighted-average shares outstanding – basic35.2 35.6 35.5 
Add: Potential effect of diluted securities attributable to stock-based payments0.2 0.2 0.2 
Weighted-average shares outstanding – diluted$35.4 $35.8 $35.7 
Earnings per share - Basic(1):
$22.89 $22.78 $16.65 
Earnings per share - Diluted(1):
$22.79 $22.66 $16.58 
(1) Amounts may not recalculate due to rounding.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 11, 2025
2023Feb 13, 2024
2022Feb 21, 2023
2021Feb 15, 2022
2020Feb 16, 2021
2019Feb 18, 2020
2018Feb 19, 2019
2017Feb 16, 2018
2016Feb 21, 2017
2015Feb 16, 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.