Earnings per Share (“EPS”)
The calculations of basic and diluted EPS are as follows:
Year Ended
December 31,
($ in millions and shares in thousands, except per share amounts)202520242023
Net income$187 $864 $1,023 
Basic weighted average number of shares outstanding259,495257,046255,239
Stock awards and equity units (share equivalent)1,2692,1061,031 
Diluted weighted average common shares outstanding260,764259,152256,270
EPS:
Basic$0.72 $3.36 $4.01 
Diluted$0.72 $3.33 $3.99 
Anti-dilutive shares excluded from the calculation of EPS12,641 8,363 9,025 
Diluted EPS was computed using the treasury stock method for stock option awards, performance share units, and restricted share units. The computation of diluted EPS excludes the effect of the potential exercise of stock-based awards when the effect of the potential exercise would be anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 28, 2025
2023Feb 26, 2024
2022Feb 27, 2023
2021Mar 21, 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.