14. EARNINGS PER SHARE:
The following table reconciles income (“numerator”) and shares (“denominator”) used in our computations of earnings per share for the years ended December 31, 2025, 2024, and 2023 (in millions, except share amounts which are reflected in thousands):
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Income (“Numerator”) | | | | | |
| Net (loss) income | $ | (99) | | | $ | 319 | | | $ | (279) | |
| Net loss attributable to the redeemable noncontrolling interests | — | | | — | | | 4 | |
| Net income attributable to the noncontrolling interests | (13) | | | (9) | | | (16) | |
| Numerator for basic and diluted earnings per common share available to common shareholders | $ | (112) | | | $ | 310 | | | $ | (291) | |
| | | | | |
| Shares (“Denominator”) | | | | | |
| Basic weighted-average common shares outstanding | 69,118 | | | 65,782 | | | 65,125 | |
| Dilutive effect of stock settled appreciation rights and outstanding stock options | — | | | 314 | | | — | |
| Diluted weighted-average common and common equivalent shares outstanding | 69,118 | | | 66,096 | | | 65,125 | |
The net earnings per share amounts are the same for Class A and Class B Common Stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.
The following table shows the weighted-average stock-settled appreciation rights and outstanding stock options (in thousands) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive.
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Weighted-average stock-settled appreciation rights and outstanding stock options excluded | 5,289 | | | 5,626 | | | 4,425 | |
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.