NET INCOME PER SHARE
Basic earnings per share for the Company’s common stock is computed by dividing, net income for the period by the weighted average number of common shares outstanding during the year.
In August, 2018, the Company issued an aggregate principal amount of $880 million of 2.00% Convertible Senior Notes due 2028 (“2028 Notes”) which were fully converted or redeemed in November 2023. The conversion of these notes was included in the calculation for diluted earnings per share utilizing the “if converted” method for the year ending December 31, 2023 and 2022. The denominator for diluted net income per share for the years ended on December 31, 2023 and 2022 did not include any effect from the capped call transactions entered into by the Company with certain financial institutions with respect to shares of the Company’s common stock (“2028 Notes Capped Call Transactions”), which were settled on September 1, 2023, because it would be antidilutive.
Net income per share of common stock is as follows for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
202420232022
Basic DilutedBasicDilutedBasicDiluted
Net income per common share (1)
$37.69 $37.69 $19.64 $19.46 $9.57 $9.53 
Numerator (in millions):
Net income$1,911 $1,911 $987 $987 $482 $482 
Effect of dilutive 2028 Notes— — — — 
Net income available to common stock$1,911 $1,911 $987 $993 $482 $489 
Denominator:
Weighted average of common stock outstanding for earnings per share50,697,42850,697,42850,262,30250,262,30250,345,35350,345,353
Adjustment for assumed conversions744,558990,268
Adjusted weighted average of common stock outstanding for earnings per share50,697,42850,697,42850,262,30251,006,86050,345,35351,335,621
(1) Figures have been calculated using non-rounded amounts.

Historical Timeline

Fiscal YearFiled
2024Feb 21, 2025Showing above
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 23, 2022
2020Mar 1, 2021

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.