NET INCOME PER COMMON SHARE
The Company computed its basic and diluted net income per common share as follows:
| | | | | | | | | | | | | | | | | |
| (In millions, except per share data) | 2025 | | 2024 | | 2023 |
| Net income | $ | 25.3 | | | $ | 598.5 | | | $ | 663.6 | |
| | | | | |
| Weighted average common shares outstanding for basic net income per common share | 48.1 | | | 56.0 | | | 61.0 | |
| Weighted average impact of dilutive securities | 0.4 | | | 0.7 | | | 0.7 | |
| Total shares for diluted net income per common share | 48.5 | | | 56.7 | | | 61.7 | |
| | | | | |
| Basic net income per common share | $ | 0.53 | | | $ | 10.69 | | | $ | 10.88 | |
| | | | | |
| Diluted net income per common share | $ | 0.52 | | | $ | 10.56 | | | $ | 10.76 | |
Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows:
| | | | | | | | | | | | | | | | | |
| (In millions) | 2025 | | 2024 | | 2023 |
| Weighted average potentially dilutive securities | 0.8 | | | 0.4 | | | 0.8 | |
Shares underlying contingently issuable awards that have not met the necessary conditions as of the end of a reporting period are not included in the calculation of diluted net income per common share for that period. The Company had contingently issuable PSU awards outstanding that did not meet the performance conditions as of February 1, 2026, February 2, 2025 and February 4, 2024 and, therefore, were excluded from the calculation of diluted net income per common share for each applicable year. The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.6 million, 0.2 million and 0.1 million as of February 1, 2026, February 2, 2025 and February 4, 2024, respectively. These amounts were also excluded from the computation of weighted average potentially dilutive securities in the table above.
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.